23 Annual Report 2021-22

23rdAnnual Report 2021-22
have navigated the ebb and flow of market cycles

for more than two decades to consistently deliver
superior returns.
We have endeavoured to remain true to label
and not get carried away by market fads. Our
robust investment philosophy is built on efficient
risk management, sound governance practices,
long‑term orientation with a focus on generating
superior risk‑adjusted returns. Our investment team
has showed the benefits of disciplined investing
and this has held us in good stead, enabling us to
enhance investor confidence and trust.
Our proven long‑term track record of delivering
sustainable value is powered by our experienced
team, robust distribution network, and strong
At HDFC AMC, we aspire to be a wealth creator IT and digital backbone. Anchored to our culture
for every Indian while shaping the savings and of transparency, best‑in‑class governance
investment landscape. We believe the India and effective risk management, we are taking
growth story can surprise on the upside. Our confident strides towards achieving our vision
comprehensive product suite is designed not only by launching innovative solutions, enhancing
to capitalise on that story, but also to fuel diverse digitalisation, embedding ESG principles, and
aspirations and cater to evolving investing needs. upholding the highest standards of ethical conduct
Staying true to our investment philosophy, we and transparency.
HDFC AMC: Quick Facts Contents
Corporate Overview
Performance Highlights FY 21‑22
4 HDFC AMC at a Glance
4,07,553 Crore
5 Our Investment Philosophy
6 Our Product Suite
H 7 Our Presence
Mutual Fund Assets Under Management (AUM) 8 Decoding Key Terminologies
of the MF Industry
3.05% 10 Key Performance Indicators
12 Chairman’s Message
1,393 Crore
14 MD’s Message
18 Digital
H 20 Marketing Initiatives
Profit After Tax 26 Embedding ESG Principles
5.08% 30 Our Board of Directors

35 Leadership Team
37 Senior Investment Team
64%
Dividend Payout Ratio
58 Lakh
Unique Investors
Statutory Reports
38

Management Discussion
and Analysis
62 Directors’ Report
1,187 99 Lakh
77 Business Responsibility and
Sustainability Report
109 Corporate Governance Report
Employees Live Accounts

Financial Statements
128 Independent Auditor’s Report
228 ~99%
136 Balance Sheet
137 Statement of Profit and Loss
138 Statement of Changes in Equity
Investor Service Pincodes serviced 139 Statement of Cash Flows
Centres (ISCs) across India
141 Notes to Financial Statements
Growth y‑o‑y
Note:
• All data as of March 31, 2022/ for FY 21-22 unless stated otherwise
• For details on Mutual Fund AUM, refer to pages 6 and 7
• ISCs include a representative office in Dubai For complete information on our offerings
• Actively managed equity‑oriented mutual funds include all solution‑oriented referred to in this document, please refer
schemes/portfolios and excludes index funds & ETFs our website www.hdfcfund.com
HDFC ASSET MANAGEMENT COMPANY LIMITED
HDFC AMC at a Glance
HDFC AMC is among India’s most profitable and preferred mutual fund managers.
We offer a comprehensive suite of saving and investment options across varied
asset classes to our retail and institutional customers. For an ever‑growing
customer base that comprise individuals, families, corporates, and institutions,
we provide a one‑stop solution for investments that help them improve income
and create wealth.
We work with a broad and diverse set of distribution partners
which helps us expand our reach. We serve our customers and
distribution partners in ~99% pincodes across India through
our network of investor service centres and modern digital
Vision Mission
platforms. We also provide portfolio management and separately
managed account services to high net‑worth individuals (HNIs),
family offices, domestic corporates, trusts, provident funds, and
To be the most respected To be the wealth creator
domestic and global institutions.
asset manager in the world for every Indian
Our promoter shareholders

Our principal shareholders are Housing Development Finance Corporation Limited (HDFC) and abrdn Investment Management Limited
which own 52.6% and 16.2% stake (as on March 31, 2022), respectively. The brand equity, goodwill, and expertise of our sponsors
empowers us to grow from strength to strength.
HDFC abrdn Investment Management Limited

HDFC was incorporated in 1977 as a specialised mortgage finance abrdn Investment Management Limited (AIML) (erstwhile
company and is today a financial conglomerate having a dominant Standard Life Investments Limited) is a wholly‑owned subsidiary
presence in housing finance, banking, life and non‑life insurance, of abrdn Investments (Holdings) Limited (formerly Standard Life
asset management, real estate funds and education finance. Investments (Holdings) Limited), which in turn is a wholly‑owned
subsidiary of abrdn plc (formerly Standard Life Aberdeen plc).
Housing Key facts

finance
Education
finance
Banking £542 Billion
Assets Under Management (AUM)
Business
5,000+
Presence
Life and
Real estate non‑life
funds insurance
Employees and investment
Asset professionals globally
management
Figures as at 31 December 2021
4 ASPIRE. BELIEVE. ACHIEVE.

CORPORATE OVERVIEW HDFC AMC AT A GLANCE | OUR INVESTMENT PHILOSOPHY
Our Investment Philosophy
A robust investment philosophy, efficient risk management, best‑in‑class practices

and sound governance have consolidated our position as India’s leading asset
management company.
Equity‑Oriented Schemes Debt-Oriented Schemes

Equity‑oriented schemes constituted 51% of our total AUM Debt Schemes Investments in fixed income securities are
as of March 31, 2022. Our investments in equities are driven guided by our investment philosophy of Safety, Liquidity and
by fundamental research with a medium to long‑term view. Returns (SLR), generally in that order. Given the limited liquidity
Our investment philosophy for equity‑oriented schemes is of fixed income markets in India, especially in difficult times, we
based on the belief that over time, stock prices reflect their believe focus on liquidity, especially in open ended schemes is
intrinsic values. Our research efforts are predominantly of paramount importance. It was this philosophy that enabled
focussed on bottom‑up research keeping in mind the economic our schemes to tide over a very challenging environment in
outlook and macro‑economic conditions. The focus is on debt‑oriented markets over the last few years due to default by a
understanding the businesses, key drivers and understanding large Non-Banking Finance Companies (NBFC) & Housing Finance
the risks taking into account both quantitative (growth Companies (HFC), COVID‑19 related credit stresses as well as
prospects, key variables, analysis of P&L statements, Balance shutting of several fixed income schemes by another mutual fund
Sheet and cash flows etc.) and qualitative (management quality, due to illiquidity of the underlying portfolios. Our debt-oriented
corporate governance, track record, competitive advantage, schemes constituted 46% of our total AUM as of March 31, 2022.
feedback from dealers, customers & experts etc.) factors. While Our debt-oriented schemes invest in debt securities including
the above forms the core of our approach to equity investments, government securities, non‑convertible debentures, corporate
we are mindful of the fact that there are/ can be phases in bonds, asset‑backed securities, money market instruments, etc.
markets when alternative approaches to investing perform All investments are done in line with the Scheme Information
better. With a view to offer choice of diversity of styles to our Document (SID) and in permitted instruments. Our Credit Risk
customers and to mitigate business risk, we built capabilities by Assessment framework lays emphasis on Four Cs of Credit –
adding appropriate resources during the year. While we already Character of Management, Capacity to Pay, Collateral pledged to
have products, which focus on different market capitalisations, secure debt and Covenants of debt, wherever applicable. Further,
we feel diversity in our investment style and approach will be we have an internal framework to determine absolute and relative
in the long‑term interest of our customers and the business. investment exposure limits for individual credits. This approach
We will remain firmly focussed on fundamentals‑led research along with a deep understanding of credits has helped us avoid
and will continue to strive to improve our understanding of the majority of stress cases faced by the mutual fund industry over
investment universe. the past decade. Also, in the few instances where our holdings
experienced some stress, we were able to recover a major portion
of our investments due to good covenants, strength of underlying
businesses/ collateral and parentage. This approach along with
conservative sizing of investments has kept credit losses to
minimal levels. Apart from quality credit research, we aim to
add value in fixed income investments by managing duration of
portfolios driven by our view on interest rates, yield curve, etc.
ANNUAL REPORT 2021-22 5

Our Product Suite
We offer a rich suite of savings and investment products across asset classes catering
to the needs of our large and diverse customer base. We also provide portfolio
management and segregated account services. Our mutual fund schemes have
weathered multiple market cycles, many of them going back more than two decades.
Our equity‑oriented funds command sizeable market share and our offering of
systematic transactions have been enhancing our appeal to customers.
Equity‑oriented Debt‑oriented Liquid Others
26 48 2 9
schemes schemes schemes schemes
Note: As of March 31, 2022
Equity‑oriented includes all solution oriented schemes/ Segment‑Wise Break‑Up (%)

portfolios. Others includes Arbitrage funds, Exchange Traded
Funds (ETF) and Fund of Funds (FoF).
H (in Crore) Equity 51.4
AUM on Average Debt 32.1
last day of AUM for the Liquid 13.5
Category of the scheme
quarter ended quarter ended
March 31, 2022 March 31, 2022 Others 3.0
Liquid Fund/Money Market 84,755 1,04,312

Fund/ Floater Fund
Gilt Fund/ Glit Fund with 10‑year 1,533 1,521 Channel‑Wise Break‑Up of Total AUM (%)
constant
Remaining Income/ Debt 96,897 1,03,984

Oriented Schemes Banks 10.5
MFDs 27.8
Growth/Equity Oriented 1,16,727 1,15,642 National Distributors 20.1
Schemes (Other than ELSS)
Direct 41.6
ELSS Funds 9,225 9,358
Hybrid Schemes 74,142 74,427
Solution Oriented Schemes 8,436 8,318 Channel‑Wise Break‑Up of Equity‑Oriented AUM (%)
Index Funds 9,931 8,732
GOLD ETF 3,087 3,025 Banks 13.5

MFDs 41.3
Other ETF 1,653 1,598
National Distributors 23.3
Fund of Fund investing overseas 1,169 1,168 Direct 21.9
Total 4,07,553 4,32,085
Note: As of March 31, 2022

CORPORATE OVERVIEW OUR PRODUCT SUITE | OUR PRESENCE
Our Presence
Our strong brand appeal and distribution network have contributed majorly to our
growth over the past few years. We are reaching out to suburban and rural India apart
from deepening our potential in all major cities and towns.
Spread of ISCs across India Physical footprint ISCs

(No.)
66 100
73
166
56 54 March 2017
44
78 150
228
March 2022
T30 – Top 30 cities in India

North West South East B30 – Beyond the top 30 cities in India
Investor base break‑up

(%) Number of distribution partners
50,000+ 75,000+
March 2017 March 2022
Individual MAAUM* 62.4
Non‑individual MAAUM* 37.6
Percentage of AUM by Geography

(%)
Geography wise breakup

(%)
B30 ‑ MAAUM* 16.5

T30 ‑ MAAUM* 83.5
Top 5 Cities 66
T30 – Top 30 cities in India Next 10 Cities 15
B30 – Beyond the top 30 cities in India Next 20 Cities 7
Next 75 Cities 10
Others 2
*Monthly Average AUM

Decoding Key Terminologies

of the MF Industry
Asset management companies
have distinct business models
where funds are raised from
investors and invested by the
company. In this section, we
try to simplify some of the
industry‑specif ic metrics
used frequently.
Asset Under
Management (AUM) Net Asset
It is the total value of all
Value (NAV) Asset
investments managed by
Total Expense Ratio
the mutual fund. AUM can be It is the price of each unit Allocation The expense ratio of a mutual
at a scheme level or a plan of a mutual fund scheme.
This refers to the investment fund is calculated by dividing
level. For a mutual fund as a Typically, new mutual fund
strategy that aims to balance the total expenses the fund has
whole, AUM represents value schemes are priced at ` 10
risk and rewards by allocating incurred by its AUM. It gives the
of total investments across per unit during the New Fund
capital between different cost, a mutual fund incurs, for
all schemes. Offer (N FO) period.
asset classes such as equity, managing each unit. A mutual
Consequently, the NAV will
debt, etc. fund deducts these expenses
change depending on the
performance of the scheme. from the NAV before declaring
it on a daily basis.

CORPORATE OVERVIEW DECODING KEY TERMINOLOGIES OF THE MF INDUSTRY
Passive Funds
Actively Invest on the basis of a
Systematic Managed specified index; whose
Systematic Systematic
Withdrawal Funds
performance it seeks
Investment Transfer Plan to track.
Plan (SWP) Provide the fund
Plan (SIP) (STP) Through this facility, manager the flexibility
A mutual fund gives This plan can be used the investor receives to choose the
investors an option in volatile markets to a p re ‑ d ete r m i n e d investment portfolio,
of either investing gradually transfer or amount on a periodic within the broad
lump sum or through switch small amounts basis from the invested parameters of the
a SIP, breaking the of investments at scheme. Investors who investment objective
amount into periodic chosen inter vals need regular income, of the scheme.
investments over a long (days/month/quarter) like retirees, often
period. For example, from one scheme to go for this option.
if an investor wants to another scheme of a The payments are
invest H60,000 annually mutual fund. usually given from the
in a mutual fund scheme scheme’s dividend
and does not have income or capital
the lump sum amount gain distribution.
available, he/she can
opt for an SIP of H5,000
every month.

Key Performance Indicators
Revenue from Operations Operating Profit

(H in Crore) (H in Crore)
2,115 1,513 1,537

1,915 2,003 1,400
1,760 1,853
1,193
955
7.40% FY 18 FY 19 FY 20 FY 21 FY 22 17.31% FY 18 FY 19 FY 20 FY 21 FY 22
Profit Before Tax Profit After Tax

1,855 1,393
1,653 1,749 1,262 1,326
1,375
931
1,063 722
Return on Equity Dividend Per Share

(%) (H)
40.3 42
35.0 35.6
34
30.1
27.0 28
24
16
FY 18 FY 19 FY 20 FY 21 FY 22 FY 18 FY 19 FY 20 FY 21 FY 22
(5‑year CAGR)
Note:
1. FY 16‑17 has been taken as the base year for CAGR calculation. Revenue from operations, operating profit, profit before tax and profit after tax in
FY 16‑17 were H 1,480 Crore, H 692 Crore, H 800 Crore and H 550 Crore respectively.
2. The details from FY 16‑17 to FY 17‑18 considered here, are as reported in the financial statements of that year which were under earlier
applicable accounting standards.
3. Return on Equity for FY 17‑18 was under earlier applicable accounting standards whereas for FY 18‑19 onwards, it is under IndAS.
4. Dividend for FY 21‑22 is recommended by the Board of Directors on April 27, 2022 which is subject to shareholders’ approval at the ensuing
Annual General Meeting.

CORPORATE OVERVIEW KEY PERFORMANCE INDICATORS
Assets Under Management Active Equity AUM

3,95,476 4,07,553 1,99,548

3,43,938 1,64,263 1,65,381
3,19,090 1,44,925
2,91,985
1,20,050
Systematic Transactions Live Individual Accounts

(H in Crore) (Lakh)
1,182 1,231 93.4 97.7

1,153 1,130 90.3 88.6
1,035 80.5
Digital Transactions as % of Total Individual’s Share in AUM

(%) (% of monthly average AUM)
82 62.2 63.0 62.4

76 57.2 57.6
67 69
51
(5‑year CAGR)
Note:
1. All data is as of March for each year, unless stated otherwise.
2. March 2017 has been taken as the base for CAGR calculation. Assets under management and actively managed equity‑oriented
AUM in March 2017 were H 2,30,594 Crore and H 95,659 Crore, respectively.
3. Assets under management (AUM) refers to month end closing AUM.
4. Actively managed equity‑oriented AUM includes all solution oriented schemes/portfolios and excludes index funds and ETFs.
5. Systematic transactions are for the month of March for respective financial years

Chairman’s message
Capitalising on
Growth Opportunities
was further aided by improvement
in exports and supportive monetary
and fiscal policies. Since the pandemic
outbreak, the central government has
carried out a series of reforms, such as
the Aatmanirbhar Bharat package and
sector‑specific measures, to counter the
negative impact of COVID‑19 and create
an overall conducive environment for
growth. As the world diversifies its supply
chain away from China, those measures are
likely to play a key role in positioning India
as one of the preferred destination.
Despite the second wave overwhelming
India’s health infrastructure and posing a
threat to the nascent economic recovery
in the first quarter of FY22, the Indian
economy staged a solid rebound as private
consumption and investments marginally
surpassed the pre‑pandemic levels. Total
tax collections exceeded the revised
estimates by 8%, led by higher direct tax
collection. Real GDP rose by 8.9% in FY22
Dear Shareholders, (National Statistical Office estimates).
Rising inflation, however, remains a
I sincerely hope that you and your families are fine concern, prompting the RBI to undertake
and healthy. an off‑cycle rate hike of 40 bps recently.
Bond yields surged across the curve.
Global environment remains stance due to a renewed surge in COVID‑19 The RBI does not foresee the inflation
infections and a slowdown in growth pressure to subside soon, increasing the
uncertain momentum. The uncertainty in the global possibility of accelerated hikes into FY23.
The financial year gone by was a mixed bag growth and monetary policy outlook was The economic growth outlook remains
for the global economy and capital markets. aggravated by Russia’s military invasion robust, on the back of prospects of normal
On one hand, we witnessed a robust into Ukraine, which immediately led to monsoon, pick up in discretionary spend,
global recovery despite some headwinds the imposition of economic sanctions by robust exports, improved balance sheets
stemming from the successive waves major economies and sent global energy of corporate and banking sector and signs
of COVID‑19. On the other, continued and commodity prices sharply northward. of revival in private capex. However, risks
disruptions in global supply chains and to growth remain on the downside, which
surge in demand pushed inflation higher,
prompting policy actions by central banks
Indian economy firing on all include geopolitical conflicts sustaining
for longer, tighter financial conditions,
of major economies, except China, to rein cylinders elevated commodity prices and continued
in soaring price levels. The People’s Bank In India, growth accelerated as restrictions global supply‑chain disruptions. The
of China maintained its accommodative eased and demand normalised, which constant improvement in India’s services

CORPORATE OVERVIEW CHAIRMAN’S MESSAGE
exports has built some buffer on the While equity AUM has increased at a faster Further, in a move to help investors to
current account front against rising import pace thanks to continued flows and rising diversify their portfolio further, SEBI made
bill due to higher crude prices. markets, I also see tremendous potential an amendment to the mutual fund rules to
for growth in fixed income funds as well. enable the introduction of silver ETFs with
Mutual Fund industry stages a Penetration of fixed income mutual funds certain safeguards, in line with the existing
as a percentage of Bank deposits has been regulations for gold ETFs. This has been
rebound stagnant at around 9% for last few years. a long‑standing demand of commodity
After a challenging FY21 in terms of flows market participants.
into equity‑oriented mutual funds, overall Also, India has more than 50 Crore
industry AUM rose 20% to ` 37.6 Lakh Crore Permanent Account Number (PAN) I would like to extend my personal
in FY22. The industry added a staggering holders and more than 9 Crore demat gratitude to various participants viz AMFI,
3.16 Crore investor folios up from a net accounts, of which around 5 Crore have Distribution Community, Registered
addition of 81 Lakh in the previous year. been opened since March 2020. The Investment Advisors, Media and Asset
The MF industry also crossed an important Indian MF industry has reached only Management Companies who have played
milestone of 10 Crore folios to reach 12.95 3.4 Crore unique investors, which points to an extremely important role in the growth
Crore at present. disproportionate headroom for growth. It of this industry. None of this would have
is interesting to note the data points and been possible without the faith that the
During March 2022, the industry saw anecdotal evidence around job creation Indian investor has reposed in the industry
flows of ` 12,328 Crore via the systematic across industries particularly in the IT – be it an individual or a large institution,
investment plan across 5.28 Crore sector, which bodes well for growth in who bestowed their trust by putting their
outstanding SIP accounts. This reflects the consumption as well as savings. If we hard‑earned capital.
maturity of Indian households in investing look at India’s annual financial household
systematically and for long periods. The 10 years of HDFC Cancer Cure fund
savings, there’s no visible limit to the
progress made over the past 12 months potential investable capital. I believe that This year we commemorated 10‑years of
has further strengthened my belief in the mutual funds can tap this opportunity HDFC Cancer Cure Fund (CCF), a unique
MF industry, which enjoys strong tailwinds and be the vehicle of choice for funnelling initiative of HDFC MF in partnership with
from the increasing importance of financial household savings into investments. Indian Cancer Society. There cannot be
savings among Indian households, growing a better investment than saving lives and
awareness, strong distribution platforms,
ease of reach and transactions through
Regulatory direction towards this was a partnership that encouraged us
to invest in humanity and nurture hope.
digitisation. I believe that digitisation building investor confidence I sincerely thank all our investors and
is helping the industry democratise Indian capital market regulator, SEBI has partners for their support.
investments into mutual funds and achieve played a very important role in the growth
inclusive growth. Rise in internet and of the industry. It has played the dual role of Thank you
smartphone penetration, low data charges building investor confidence by regulating
On behalf of HDFC AMC, I would like to thank
along with rollout of UPI are deepening the the industry while creating a conducive
all our stakeholders for their continued
industry penetration. environment for growth. India is amongst
trust and confidence in our business
very few countries where there is a special
Markets have recently turned volatile due even in these unprecedented times. I
incentive to sell mutual fund products
to geopolitical events and rising inflation would also like to thank all our employees
beyond the larger cities and also has a
and interest rates. However, investors for demonstrating an unwavering
mandatory spend on investor education.
should not get swayed by this volatility commitment. HDFC AMC endeavours to
as fundamentals of Indian economy are In addition, the industry is mandated to deliver sustainable growth that benefits
robust. I would urge investors to remain follow the highest levels of transparency, all stakeholders aided by our goal of
patient to reap the benefits over medium coupled with strong regulatory oversight. spreading financial literacy, increasing the
to long run. Last year, SEBI instated ‘skin in the game’ acceptance of capital market‑oriented
regulations for senior employees of asset products and deepening mutual fund
Outsized growth potential management companies and has now penetration levels in the country.
Reiterating what I wrote in the previous expanded the same framework for asset
annual report, the MF industry in India management companies, aimed at aligning Deepak S. Parekh
remains significantly under-penetrated the interest of AMCs and unit holders. This Chairman
compared to global averages, despite the framework requires fund houses to invest
sharp growth in last few years. Our MF between 0.03% and 0.13% of the scheme
AUM‑to‑GDP ratio stands at only 16%, corpus into their own funds, based on the
compared to the global average of 74%. fund size and risk levels, as opposed to
Our equity AUM‑to‑market cap was at the current requirement of a maximum of
6% as against the global average of 33%. ` 50 Lakh per scheme.

MD’s message
Passion with Purpose
For the mutual fund industry, the last

5 years have witnessed significant growth.
The industry has added 7.41 Crore net new
folios and the total count now stands at
12.95 Crore. SIP flows not only continued to
be resilient but also grew from ` 9,182 Crore
for March 2021 to ` 12,328 Crore for March
2022. The industry saw new registrations
of 2.66 Crore SIPs, and gross SIP flows
added up to ` 1,24,566 Crore, up 30%
from FY21 and almost double the flows
of FY18. Industry AUM as of March 31,
2022 rose 20% to ` 37.6 Lakh Crore, more
than two‑fold increase in 5 years. During
the year, equity‑oriented AUM rose 39%
to ` 18.1 Lakh Crore aided both by net
new flows and mark‑to‑market change
while non‑equity‑oriented AUM grew to
` 19.5 Lakh Crore, up 6%.
At HDFC AMC, we have set an ambitious
vision and mission for ourselves. Our
Vision is “To be the most respected asset
manager in the world” and the Mission
Dear Shareholders, (Purpose) is “To be the wealth creator for
every Indian”. We believe that someday
Past couple of years have been extremely momentum remained largely steady each Indian household will own a mutual
challenging as the world witnessed an aided by higher vaccination coverage, fund scheme and we aspire to be part of
unprecedented health, economic, social, accommodative fiscal and monetary their journey. We need to make sure that
geopolitical and climate crisis. Last year, conditions and Government’s focus on all the right pieces – people, processes,
we endured through two waves of Covid structural reforms. Although foreign products, performance, partnerships and
and participated in the world’s largest portfolio investors (FPIs) were net sellers platforms – of the proverbial puzzle are
vaccination drive in history. While the in Indian equity markets for the most part in place.
social impact of the pandemic was high, of FY 2021‑22, domestic institutional
the economic impact of successive waves investors (DIIs) were net buyers aided by
was relatively muted. India’s growth robust mutual fund inflows and buoyant
retail investor participation.

CORPORATE OVERVIEW MD’S MESSAGE
Conviction and clarity in of Funds. We launched a thematic fund, We are expanding our robust ‘phygital’
uncertain times HDFC Banking & Financial Services Fund deliver y channels. Our physical
We have seen heightened volatility across and also launched HDFC Multi Cap Fund, distribution network comprising
asset classes over the last couple of years. a diversified offering. We were one of 228 branches, 75,000+ empanelled
Remaining true to the mandate, robust the early entrants in the passive space, distribution partners and ~1,200
research and portfolio construction along launching our index funds, HDFC Index employees complement our digital
with focus on risk‑adjusted returns with a Fund ‑ Nifty 50 Plan and HDFC Index Fund channels including the refreshed investor
long‑term orientation has kept us in good ‑ Sensex Plan, way back in 2002. We further app‑MF Online, investor portal, chatbots
stead across cycles. In our opinion, it is expanded our passive portfolio with four and WhatsApp. We have elevated the
extremely important to not get carried new funds in the year gone by. knowledge ecosystem with high‑quality
away by market fads. Our investment content delivered in a contextual
We would like to further expand our
team once again showed the benefits of and consumable format across our
thematic, passive and international
disciplined investing and thinking longer channels and customised for various
offerings in times to come. We have also
than most in the market. We take pride in investor segments such as millennials
initiated efforts for launching Alternative
the quality of our people and robustness and retirees. We have also significantly
Investment Funds (AIF) and will also build
of processes. increased our presence on social media,
on Portfolio Management Services (PMS).
with active engagement now across all
The HDFC brand is respected for its Our strategy is completely aligned with
major platforms.
high levels of compliance, ethics, and our core objective of making HDFC AMC
risk management. To us, risk is not just the brand of choice for any savings and We are focussed on process automation
the steps and tools we use, it is part of investing needs. to better enable the frontline client facing
our culture. team engage with our partners and
Customer‑centricity at the core clients. We have also enhanced our call
Expanding Product Portfolio We not only want to deliver investment centre experience, including the quality
returns, but also build an inclusive of service and turnaround time.
We fully understand that different
investors have different needs. We will ecosystem of information, knowledge
continue to expand our range of products and platforms. In our pursuit to transform
and solutions to offer our clients a from client service to client delight, we
comprehensive platform to meet their have launched various initiatives like
financial goals and investing needs. e‑KYC, ease of SIP documentation, an
industry‑first Smart statement, QR codes
We launched a slew of new products on physical statements, among others to
across categories to further expand our enhance our client’s experience.
portfolio. During the year, we launched
HDFC Asset Allocator Fund of Funds, an
interesting offering for investors looking
for dynamic asset allocation. Based on
feedback received from our partners
and investors looking for a product that
aids global diversification, we launched
HDFC Developed World Indexes Fund

MD’s message
Leveraging digital to retain the Committed to prosperity of In celebration of the 75th anniversary
of India’s Independence, we launched
edge every Indian #BarniSeAzadi, the most ambitious
The advancement in digital technologies We believe that every Indian has the campaign we have done till date. The
is driving financialisation of savings, right to participate in and benefit from campaign’s success reflects the connect
with simple and intuitive platforms and the India growth story, and mutual it has been able to establish with the wider
tools offering easy access to more than funds is an attractive vehicle towards masses due to deep‑rooted Indian insight.
a billion to the world of investing. The that. Given the economy’s significant The campaign talks about how we have
emergence of fintech and the gamification long‑term grow th potential and traditionally saved money in Barnis and
of specialised apps is attracting a broader under‑penetration of mutual funds, we why there is a need to let the money grow
and younger potential investor base, see outsized growth opportunities. The freely in instruments like mutual funds.
especially millennials and GenZ. At next half‑a‑trillion‑dollar growth for the We also launched the #LaxmiForLaxmi
HDFC AMC, we continue to build on our industry is merely the same amount that initiative, where women financial experts
strong digital backbone to stay ahead Indian households save every year across educate women investors on financial
and consolidate our market position. all asset classes. self‑reliance through a missed call service.
Our digital team implemented a host Our ‘Mission to Mars’ programme was
In our mission to be the wealth creator for
of initiatives aimed at making HDFC introduced to make children aware about
every Indian, we have taken several steps
AMC a leader in the digital‑first world, various financial concepts.
to make our products and solutions more
with biometric authentication, E‑KYC,
accessible. Initiatives such as micro‑SIP,
simplified user journeys backed with drop
flex‑SIP, transact‑on‑call, bulk renewals,
off support, partnership for ETF, among
co‑browsing support, and various others
others. We have also expanded our modes
have been carried out to reduce the barrier
of transacting and payment options. We
of entry and simplify the investment
launched ‘Connekt’ app to enable our
process. We have also reached out to the
distribution partners to build and expand
masses through varied multilingual content
their digital footprint and build better
and hundreds of investor awareness
engagement with investors.
programmes across the country.
Sustaining growth momentum
We closed FY 2021‑22 with 4.08 Lakh Crore
in AUM, 58 Lakh unique customers, and
99 Lakh live accounts. Our asset mix of
equity‑oriented and non‑equity‑oriented
funds of 51% and 49% versus the industry’s
48% and 52%, respectively, remains
favourable. We delivered yet another year
of healthy profitable growth with total
income up 11% YoY to ` 2,433 Crore and
Profit After Tax (PAT) increasing by 5% to
` 1,393 Crore.

CORPORATE OVERVIEW MD’S MESSAGE
Going beyond the business of between planting a sapling and starting Thank you
an SIP. As a sapling needs fresh air, water,
investing nutrients and sunlight to grow into a sturdy
At HDFC AMC, we will continue investing
We hold ethics and integrity above all, in the future while maintaining a
tree, an SIP needs discipline and patience
and we have always been conscious of our cost‑conscious culture to leverage
through market volatility to become a
responsibility to the society at large. For us, fully on the growth potential of asset
target corpus.
welfare initiatives go beyond ESG and CSR; management industry in India. We remain
they form part of our ethos and values. To support socially disadvantaged groups, well positioned to capitalise on the
Keeping this in mind, we had launched we partnered with various NGOs for emerging opportunities, powered by our
the HDFC Cancer Cure fund, which aims procurement of various articles. Pedigree, People, Processes, Products,
to provide financial aid for treatment to Performance, Presence, Partnerships
Finally, during the hardships of the last
underprivileged and low‑income patients and Platform and keeping a deep sense of
couple of years, it was our people who
diagnosed with any curable/early detected Purpose at the centre.
not only managed to continue serving
cancer through our empanelled hospitals. our clients efficiently, but also win over I thank you once again for your trust
Targeted at creating a greener future COVID-19 with optimism, hope and and confidence in HDFC AMC. I also
while creating wealth for every Indian, empathy. Our people are a critical part of take this opportunity to thank our
we launched our #NurtureNature our existence and we have bolstered this clients, distribution partners, service
campaign. It highlights the similarities invaluable talent pool through continuous providers, and above all, our people for
knowledge upgradation and certification their unwavering commitment. I would
programmes. These initiatives have, in also like to thank SEBI for continued
the last year alone, resulted in over 1,000 guidance and direction, and AMFI for all its
CFA Investment Foundation certifications, efforts and sustained campaign to drive
hundreds of NISM certifications and industry growth.
multiple workshops such as CFA
Ethics, Business Intelligence, Executive Navneet Munot
Presence, Performance Management, MD & CEO
amongst others.

Digital
Our digital solutions framework includes digital solutions for our partners, investors
and corporate website. We provide an end‑to‑end digital onboarding solution for retail
individual investors and for our mutual fund distributors. Our technology platforms
provide enhanced user experience backed by design led thinking, strong analytics and
robust new age technology architecture and solutions.
Key Initiatives
Focus Areas Transact on call: Added to our digital channels’
1) Enhance investor experience by building ability to transact via phone supported with
more meaningful engagement across all inbound and outbound calling
our digital channels
2)
Power our partners to scale their
business potential RM Login and API Gateway: Enabled MFOnline
3) Keep refreshing and strengthening our partner app for mutual fund distributors’ (MFD’s)
digital capabilities RM login and built the API gateway for direct
integration with MFDs
RM & more on our MFD’s Digital Office:

C
Strengthened the digital marketing solution by
providing a wide range of features to make it a
comprehensive digital office for our MFDs
Analytics based campaigns: Ran

analytics‑based cross/up sell campaigns
leading to 2.5x conversion rates compared to
other campaigns. We are further building on
this capability
Refresh of Investor Solutions: Improved

investor experience by adding multiple
features to simplify usage including bio
metric authentication, enabled nudges for
recommended steps and strengthened user
journey management which doubled our drop
off conversion rate.
ETFs via HDFC AMC website: Our investors can

now buy our ETFs directly from our website via
our partnership with Smallcase

CORPORATE OVERVIEW DIGITAL
Investors
Investor Investor Chat Bot Quick Links WhatsApp Transact

Portal App for Investors on Call
Partners
Partners Partners Admin ARN WhatsApp for Digital Marketing Transact

Portal App Portal Link Partners Solution on Call
Engagement & Support Channels
Co‑browsing Call Back Agent Journey Live Chat

Services Services HelpDesk Management
Success Stories
• 2.5x growth in Connekt user base (Digital
marketing solutions)
• Over 90% MFDs empanelled online
• MFOnline investor user base grew by over 30%
• MFOnline continues to be the preferred channel
for direct investors driving onboarding of > 50%
of new direct PANs and even higher percentage
of transactions
• Voice based services – Voice search on msite
(hdfcfund.com) and enabled Alexa
• Analytics powering up our cross/up sell driving
2.5x conversion rates

Marketing Initiatives
Our campaigns during the year were not only focused on enhancing our brand equity
but also empowering and encouraging women to become confident investors.
The year also saw sustained campaigns to disseminate relevant and timely information
to educate the investor and inculcate financial discipline among the youth.
#NurtureNature Spreading hope on

On the occasion of World Environment Day on June 5, World Cancer Day
2021, we initiated #NurtureNature, a socially responsible
We celebrated #10YearsOfCare in association with
campaign that also advanced our sustainability ambition
Indian Cancer Society and launched our landmark film
and environmental stewardship. We planted a tree on
on the occasion. The film has won much appreciation
behalf of each investor who registered a Systematic
from all corners.
Investment Plan (SIP) through online mode between
May 31‑June 11, 2021. We associated with Grow‑Trees.
com for this innovative social campaign. The initiative Watch here: https://www.youtube.com/watch?v=Jp43hYlzaCg
received an overwhelming response.

CORPORATE OVERVIEW MARKETING INITIATIVES
#BarniSeAzadi
To commemorate India’s 75th Independence Day, we launched a
mega investor education campaign, titled #BarniSeAzadi. This was
specially curated for women and highlighted social stereotypes we
have long been conditioned to accept. Consider what happens in
the average Indian household when it comes to taking decisions
regarding money. In quite a few families, even today, women do
not have a significant say in matters pertaining to personal finance
and investments. Although household dynamics have changed
significantly and women today contribute handsomely to the
household budget, when it comes to financial planning, patriarchal
stereotypes still influence decisions. But financial planning that Execution
concerns the family should involve the family.
As part of this unique initiative, we ran advertising campaigns
Our campaign intended to communicate this idea to the wider across the mainstream media, that is, on television, as well as on
masses and encourage financial independence among women. social and digital media. We also conducted an interactive activity
We zoomed in on the barni (canister), because, like almirah in Reliance Smart, where we had a humanised Barni talk to women
lockers, the barni was among the traditional places where and advice them on the importance of investing idle money.
women predominantly stored excess family money. Through the Additionally, with the support of our branches, we conducted
campaign we wanted to emphasise on the need to shift idle money around 400 IAP activities for women investors.
to more growth‑oriented instruments like mutual funds, and also
on the need to liberate the mindset in favour of women. Outcome
This campaign has helped us to reach out to women, who remain
the most neglected target group in the financial sector, and
Watch here: https://www.youtube.com/watch?v=bc3oQbxUWOE enabled us to initiate a conversation addressing them.
#LaxmiForLaxmi
Introduction Outcome
On March 8, 2022, building on the #BarniSeAzadi campaign, we Within a month, we were able to connect with more than
launched the #LaxmiForLaxmi campaign. An exclusive end‑to‑end 3,0 0 0 women investors and encouraged them to seek
women‑led financial empowerment initiative, the campaign aimed financial independence.
to connect women investors with woman financial experts near
them via a missed call. The experts would attend to queries of
the women investors and handhold them in their journey towards
financial independence.
Execution
The core rationale behind the campaign was the belief that women
can connect better, empathise and understand each other’s needs.
In this context, we also launched a film that featured HDFC AMC’s
women employees advocating this unique missed call service. The
following weeks saw a series of posts being released and promoted
on social media, that urged women to go for the missed call service
and thus take the first step towards their financial independence.
The campaign is still going on and we plan to promote this further
through unique marketing initiatives that will also broaden the
scope of the campaign.
Watch here: https://www.youtube.com/watch?v=74zXwMrvaXM

#AssetAllocation campaign ELSS campaigns

We released a film that supported our initiative to create C a m p a i g n s o n #E kTe e r S e D o N i s h a n e a n d
awareness on ‘How to invest tension free/befikar’ through #SavingIsTheNewCool were initiated during the year to
various mutual funds. The film highlighted the importance promote ELSS investment in the months leading up to
of investing money in mutual funds in different asset classes March 31. The campaign specifically focused on the twin
such as equity, debt and gold, thereby maintaining the right benefits of ELSS investments – tax‑savings and market
balance between growth and stability, as well as reducing gains. We targeted the millennial audience through smart
stress on account of volatility in the financial markets. In creatives that told them of the dual benefits of ELSS.
the dynamic and volatile environment that we live in today,
diversification of the financial portfolio across asset classes
has assumed added significance. The film also highlighted
this aspect.
Stay relaxed and

tension free
FY 21‑22 NFO launches
Diversifying your investments across asset classes helps to
mitigate the impact of market ﬂuctuations. In a world of
uncertainties, asset allocation is critical. Thankfully, various
categories of hybrid schemes - investing in a combination of
asset classes, provide a convenient route to asset allocation
• HDFC Asset Allocator Fund of Funds

and keep your tension away!
Choose from asset allocation solutions

• HDFC Banking & Financial Services Fund
• Conservative Hybrid Fund
• Equity Savings Fund • HDFC Nifty 50 Equal Weight Index Fund
• Multi Asset Allocation Fund • HDFC Developed World Indexes Fund of Funds
• Balanced Advantage Fund • HDFC Multi Cap Fund
• Aggressive Hybrid Fund
• HDFC NIFTY 100 Index Fund
Contact your • HDFC NIFTY 100 Equal Weight Index
MFD/RIA.
• HDFC FMPs - Series 46
An Investor Education Initiative by HDFC Mutual Fund
For KYC, change of address, investor complaints redressal, etc.
• HDFC NIFTY Next 50 Index Fund
visit, https://www.hdfcfund.com/information/key-know-how.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Watch here: https://www.youtube.com/watch?v=KZnkkkZAG-s

Anniversaries
• HDFC Balanced Advantage Fund – Celebrating 28 years
• HDFC Capital Builder Value Fund – Celebrating 28 years
• HDFC Top 100 Fund – Celebrating 25 years
• HDFC Children’s Gift Fund – Celebrating 21 years
• HDFC Gilt Fund ‑ 20 Years
• HDFC Index Fund ‑ NIFTY 50 Plan ‑ 19 Years
• HDFC Index Fund ‑ SENSEX Plan ‑ 19 Years
• HDFC Equity Savings Fund – Celebrating 17 years
• HDFC Small Cap Fund – Celebrating 14 years
• HDFC Mid Cap Opportunities Fund ‑ 14 Years
• HDFC Gold Exchange Traded Fund – Celebrating 11 years
• HDFC Corporate Bond Fund ‑ 11 Years
• HDFC Short Term Debt Fund ‑ 11 Years
• HDFC Banking and PSU Debt Fund – Celebrating 8 years
• HDFC Credit Risk Debt Fund – Celebrating 8 years
• HDFC Retirement Savings Fund – Celebrating 6 years

The Person of the Year 2021

At the beginning of the year, we released
“The Person of the Year 2021”, which was a panoramic and
interesting look back at CY2021 by Mr. Navneet Munot
HDFC MF Yearbook into its

4th edition
Apart from celebrating our achievements, the Yearbook
comprehensively covers our views on:
• Global economy and markets
• Key future trends on digitalisation and Buy Now Pay Later
(BNPL), Consumer Tech, Climate Change, Electrical vehicles,
Blockchain, cryto currency and the road to Net Zero
• Indian economy
• Equity markets and sectoral overview
• Fixed income markets
Republic Day Film

On the occasion of India’s 73rd Republic Day, we celebrated
the nation’s proud moment and its rich diversity through an
animated film. The film reiterated our message #InvestInIndia,
encouraging Indians to invest through instruments such as
mutual funds instead of keeping them in Barni!
Watch here: https://www.youtube.com/watch?v=Y1KVDk61Uac
#WinOverCovid
Through this initiative, we wanted to add meaning to society’s
experience during the pandemic by highlighting the human
virtues that helped the fight against the deadly virus. While
being true to the brand promise of being of service to every
Indian, we celebrated human endurance, the spirit to help each
other and virtues that also subtly connected with qualities that
make for a committed investor.

1st edition of Passive Investment Mission to Mars – A mission to

Solutions Factsheet educate young investors
Passive funds have been gaining traction as an Mission to Mars was an out‑of‑the‑box interactive
attractive investment option over the past few years. initiative aimed at equipping children with various
FY 21‑22 saw a major pick‑up in investments in this investing concepts in a lucid and interesting manner.
space. Against this backdrop, we launched the ‘Passive This is part of our efforts to inculcate the habit of
Investment Solutions Factsheet’ dedicated solely for investing among youngsters and show the importance
our passive funds. of financial discipline.
(Passive Investment Solutions)
IT’S ALL ABOUT THE ‘NEXT’
HDFC NIFTY NEXT 50 INDEX FUND

HDFC INDEX FUND - NIFTY 50 PLAN HDFC NIFTY 100 EQUAL WEIGHT INDEX FUND
HDFC NIFTY50 EQUAL WEIGHT INDEX FUND HDFC INDEX FUND - SENSEX PLAN
HDFC NIFTY 50 ETF HDFC SENSEX ETF
HDFC NIFTY 100 INDEX FUND HDFC BANKING ETF
HDFC DEVELOPED WORLD INDEXES FUND OF FUNDS
HDFC GOLD FUND OTHER PASSIVE INVESTMENT SOLUTIONS HDFC GOLD ETF
For Product Labellings - refer respective scheme page. For disclaimers refer Page 24.
April 2022 1

Embedding ESG Principles
As a responsible corporate citizen, the HDFC Group has upheld the highest
standards of social commitment, ethical business conduct and governance
practices. At HDFC AMC, we integrate sustainability into the organisational culture
by factoring in qualitative and quantitative ESG aspects into business objectives.
HDFC AMC is focused on executing a strong ESG proposition by working with all
stakeholders and it is reflected in our mission “To be the wealth creator for every
Indian”. This culture underlines our business communications as well as activities
at the grassroots level.
ESG Investing – The HDFC AMC way

Apart from integrating essential Environmental, Social and
Governance parameters into our business operations, we
Environment have furthered the definition of ESG to include Engagement,
Stewardship and ‘Good to great’ factors for better
Ethics, investment decisions.
Wellbeing of
Transparency and
employees
Accountability Engagement: We engage with companies on a regular basis
and give our inputs on variety of issues such as executive
compensation, dividend distribution policies, capital allocation
Grow and related party transactions, among others. Also, our
sustainably investment team engages with the investee companies on
Human
to benefit all Diversity environmental sustainability.
Rights
stakeholders Stewardship: We have adopted the stewardship code, in line with
the regulatory guidance. We view stewardship as a step towards
improved corporate governance in the investee companies and
improving the interest of investors. Our investment team aims
Stakeholder Health and
to vote in an informed and pragmatic manner as we consider
engagement Safety
shareholder voting as an important shareholder right and a
valuable tool for decision making.
Inclusive Growth
Good to great: We focus on rational investing by identifying
businesses that could achieve Good‑to‑great corporate
transformations. We aspire to play the role of an active partner
in their “Good to Great journey” through a highly constructive
Engagement and Stewardship. There is one common thread
that binds all our funds – their longevity and formula for wealth
creation viz. “Sound Investment + Time + Patience”.

CORPORATE OVERVIEW EMBEDDING ESG PRINCIPLES
Environment: Resource conservation Quick facts
76 800+
HDFC AMC recognizes that climate change is not just
an environmental issue but also a business risk. As our
business, being service‑oriented, is involved in flow of % Kgs
information and financial transactions, we do not have Transactions supported E‑waste processed in
a significant carbon footprint. Our carbon footprint is by integrated online environment‑friendly
limited to the use of consumables, such as paper, plastic, platform manner
water and energy, among others. However, we endeavour
to reduce our carbon footprint and towards this, we have
LEED Nurture
consistently invested in technology and built a robust
digital environment along with other measures covered in
the report. Over the past 5 years, our digital transactions
Gold Nature
have recorded a CAGR of 31%.
We also conduct awareness drives, encourage ‘Reduce/
Reuse/Recycle’ wherever possible and monitor
improvement. Our process of managing e‑waste Certified Head Office A tree was planted
is validated by an external agency. We believe that (since 2014) for every equity SIP
conservation, optimal utilisation and management of registered in digital mode
natural resources are vital for economic development as for a specific tenure
well as societal wellbeing.
50,000 *
The Company realizes that there is a pressing need to
conserve natural resources and some of the initiatives
are listed below:
sq.ft.
Area in the heart of Mumbai uplifted through
• Adopting energy efficiency measures like deployment
rejuvenation of pond, urban foresting using
of timers for signage boards, replacing conventional
Miyawaki technique and a butterfly park
lighting with LED in most of the offices, deploying
sensor‑based lighting.
* under CSR Project
• The Company has installed sensors in taps at its
head office, where water consumption is high and
encourages to install aerator taps in branches to
conserve water.
• STP (Sewage Treatment Plant) at our head office
• Replacement of plastic water bottles with glass/
steel bottles
We intend to continue identifying and acting on
opportunities to reduce our impact on the environment
and thereby promoting a culture of sustainability.

Embedding ESG Principles
Social: Inclusive growth Quick facts
400+ ~10,000
Our deep connection has helped us foster an enduring bond
with all our key stakeholders, viz. customers, shareholders,
distributors, employees, suppliers and community at large.
Listening to them helps us understand their expectations,
thereby enabling us to prioritise issues effectively, Investor awareness Women expressing
which plays a pivotal role in our success. We leverage our programmes for women interest for taking their
organisational size and pan‑India reach to induce a culture #BarniSeAzaadi launched first step towards financial
of growth & wellbeing. on 75th Independence Day liberation #LaxmiforLaxmi
~30 10,000+
As an equal opportunity employer, we advocate and ensure
pay parity, career development and overall fair treatment
for our employees. We focus on hiring and retaining the right %
talent purely based on merit with a keen eye on diversity. We Women in permanent Beneficiaries of Cancer Care
also continuously up‑skill our workforce, aligned with the workforce initiative by the Company
changing business environment. in association with Indian
We are now present at 227 locations in India, providing local Cancer Society
1,100+ 950
employment opportunities and business to local vendors.
We conduct various initiatives centred around special days
of the year, educational programmes for large audiences,
social media campaigns to continuously engage with the
community at large. Employees completed NISM certifications over
the CFA Investment and above the mandatory
Foundation requirements
Our key CSR projects are in the area of healthcare, education, environment
sustainability and sports development.
2,989 1,00,301 doses 4,98,767

Cancer patients Vaccinations Students
113 16
Athletes Para athletes

CORPORATE OVERVIEW EMBEDDING ESG PRINCIPLES
Governance: Ethics, Transparency, Accountability We have also put in place a customer query and grievance redressal
HDFC AMC adheres to the highest standard of ethics, policy and have set up processes and tech‑based infrastructure to
transparency, disclosures and governance to protect the interests aid this function.
of stakeholders. Our Board and Management team share a strong Our investment team monitors ESG‑related factors in investee
mutual commitment towards sustainability, which is reflected companies by engaging with their management. Drawing on the
in our internal practices around stakeholder development, strengths of our governance philosophy, we place regulatory and
environmental impact, universal fair treatment and data privacy, legal compliance at the highest level of priority in all our operations.
among others. Our Board acts independently and engages
regularly with the management team to ensure best practices
across all functions. On behalf of our shareholders, the Board
oversees management and operations, and evaluates risks and
“We shouldn’t look at the success of
opportunities. Our Board Diversity Policy provides guidance on ESG in terms of money that is collected
skills, qualification, professional experience, knowledge, gender,
ethnicity and background.
by ESG funds but we should look at how
We have adopted a third‑party web‑based reporting tool which is
it is getting mainstreamed by investors
accessible to all employees/ Directors/ stakeholders for lodging like us incorporating ESG in the entire
complaints or expressing genuine concerns. We accord the
highest level of priority to regulatory and legal compliance.
investment process.”
The Company maintains a robust cyber security architecture and Navneet Munot
has in place a cyber‑resilience framework to protect the integrity of MD & CEO
data and guard against breaches of privacy. Also, we have received
ISO 27001:2013 certification, which is a milestone in terms of
security controls, across all departments in the organisation,
showcasing our exemplary security process and controls.
Quick facts
India’s Top 500 33% 50%

Companies 2021 Executive management
are women
Board of Directors are
independent
ESG Performance Award
Dun & Bradstreet’s annual publication
6 Ethics workshops ISO Certification

ISO/IEC 27001:2013 certification shows exemplary
For most of the employees in partnership information security process and controls across all
with CFA Institute departments in the organization

Our Board of Directors
Mr. Deepak S. Parekh awards by Government of India in 2006;

Non‑Executive Director Bundesverdienstkreuz Germany’s Cross
and Chairman of the Order of Merit, one of the highest
distinction by the Federal Republic of
Mr. Deepak S. Parekh (DIN 0 0 0 09078)
Germany in 2014; Knight in the Order of
has been on our Board since July 4,
the Legion of Honour, one of the highest
2000. He is also the Non‑Executive
distinctions by the French Republic in
Director and Chairman of one of our
2010; first of a network of international
Promoters, Housing Development
ambassadors for championing London
Finance Corporation Limited (HDFC)
across the globe by the Mayor of London
and its key subsidiaries. He is a fellow of
in 2017; first international recipient of
the Institute of Chartered Accountants
the Outstanding Achievement Award by
(England and Wales). He is on the board of
The Institute of Chartered Accountants
several leading companies across diverse
in England and Wales in 2010 and Lifetime
sectors. Mr. Parekh has been honoured
Achievement Award at CNBC TV18’s
with several awards and accolades viz.
15th India Business Leader Awards, 2020.
Padma Bhushan, one of the highest civilian
Mr. Keki M. Mistry of Fame by the CFO India Magazine in 2012,

Non‑Executive Director One of Best CEO for Investor Relations‑ India
at the Thomson Reuters “Extel Awards”
Mr. Keki M. Mistry (DIN 00008886) is a
– 2021, Best Banker of the year in 2011 by
Non‑Executive Director on the Company’s
Financial Express, awarded the QIMPRO
Board since December 24, 2007. He is also
Gold Standard 2011‑ Leader for Quality
the Vice Chairman & Chief Executive Officer
in Business by the Qimpro Foundation,
of one of our Promoters, HDFC. He is a fellow
honoured with the ‘CA Business Achiever of
of the Institute of Chartered Accountants of
the year’ award in the Financial Sector by the
India. Mr. Mistry joined HDFC in 1981. He was
Institute of Chartered Accountants of India
appointed as an Executive Director of HDFC
(ICAI) in 2011, declared as the Best CFO in
in 1993, as Deputy Managing Director in
Financial Services Category by the ICAI for
1999 and as the Managing Director in 2000.
2008, and CNBC TV18’s award for the ‘Best
He was re‑designated as the Vice Chairman
Performing CFO in the Financial Services
and Managing Director of HDFC in October
Sector’ for three consecutive years ‑ 2006,
2007 and as the Vice Chairman and Chief
2007 and 2008 and CFO of the Year for 2008
Executive Officer, with effect from January
and selection as the ‘Best Investor Relations
1, 2010. Mr. Mistry is also Non‑Executive
Officer’ in the Corporate Governance
Chairman of HDFC ERGO General Insurance
poll by Asiamoney (2008). He is currently
Company Limited. Some of his recognitions
the Chairman of CII National Council on
include being awarded ‘CEO of The Year’
Corporate Governance and a member of
under BFSI Category at CNBC Awaaz CEO
Primary Markets Advisory Committee set
Awards 2019, “Best Independent Director
up by Securities and Exchange Board of
Award 2014” by Asian Centre for Corporate
India (SEBI). He was also a member on the
Governance & Sustainability, the Best CEO
Committee of Corporate Governance set
Financial Services (Large Companies) 2014
up by the SEBI.
by Business Today magazine, CFO India Hall

CORPORATE OVERVIEW OUR BOARD OF DIRECTORS
Ms. Renu Sud Karnad credit, numerous awards and accolades.

Non‑Executive Director Prominent among them being featured
in list of ‘25 top non‑banking women in
Ms. Renu Sud Karnad (DIN 00008064)
finance’ by U.S. Banker magazine, listed
is a Non‑Executive Director on the
by Wall Street Journal Asia as among
Company’s Board since July 4, 2000. She
the ‘Top Ten Powerful Women to Watch
is also the Managing Director of one of
Out for in Asia’. “Outstanding, Woman
our Promoters, HDFC with effect from
Business Leader” by CNBC‑TV18, 25 Most
January 1, 2010. She holds a Master’s
Influential Women Professionals in India
degree in Economics from the University
by India Today. Ms. Karnad is currently the
of Delhi and a Bachelor’s degree in Law
President of the International Union for
from the University of Mumbai. She is a
Housing Finance (IUHF), an association of
Parvin Fellow – Woodrow Wilson School of
global housing finance firms.
Public and International Affairs, Princeton
University, USA. Ms. Karnad has had to her
Mr. Rushad Abadan Prior to this, Mr. Abadan held several senior
Non‑Executive Director positions in another significant financial
institution, NatWest Group (previously
Mr. Rushad Abadan [DIN 08035538] is
Royal Bank of Scotland Group), including
appointed as Non‑Executive Director
as Group Deputy General Counsel and
on our Board and has been nominated by
General Counsel Corporate and M&A.
one of our Promoters, abrdn Investment
Mr. Abadan also has previous experience
Management Limited (Formerly Standard
as a M&A and private equity counsel with
Life Investments Limited). Mr. Abadan
Indian law firms, Crawford Bayley & Co. and
joined abrdn plc as its Group General
DSK Legal and subsequently with the UK
Counsel in January 2016. He is a member of
law firm, CMS. Mr. Abadan was an alternate
the Executive Leadership Team and holds
director of HDFC Life Insurance Company
executive responsibility for the group’s
Limited until January 2021.
global legal and governance function.

Mr. Dhruv Kaji Limited, Colorplus Fashions Limited,

Independent Director Hindustan Oil Exploration Company
Limited, Balaji Telefilms Limited, Balaji
Mr. Dhruv Kaji [DIN 00192559] is an Motion Pictures Limited and Diamines
Independent Director on the Company’s & Chemicals Limited. He is currently an
Board with effect from October 31, advisor, guiding business strategies and
2018. He holds a Bachelor’s degree organisational development, both in India
in Commerce from the University of and abroad. He is also on the Board of
Mumbai and is an Associate Member of Network18 Media & Investments Limited,
the Institute of Chartered Accountants TV18 Broadcast Limited and Ceinsys
of India. He was the Finance Director Tech Limited.
of Raymond Limited, Executive
Director of Pinesworth Holdings
Pte. Ltd. (Singapore) and a Director
on the Boards of Raymond Apparel
Mr. Jairaj Purandare Andersen India, before joining EY. He has

Independent Director considerable experience across the
Financial Services, Infrastructure, Power,
Mr. Jairaj Purandare [DIN 00159886] is an Telecom, Media, Pharma and Auto sectors.
Independent Director on the Company’s International Tax Review (Euromoney), in
Board with effect from October 31, its report ‑ World’s Leading Tax Advisors
2018. He is the Founder Chairman of has named him several times as among the
JMP Advisors Pvt Ltd, a leading advisory, leading Tax Advisors in India. A frequent
tax and regulatory services firm, based speaker at seminars in India and abroad,
in Mumbai, India. He has more than he has presented several papers in areas of
three‑and‑a‑half decades of experience his expertise, including inbound/outbound
in tax and business advisory matters and is investment structuring, international tax,
an authority on tax and regulation. He was transfer pricing, M&As, Indian Budget and
Regional Managing Partner, Chairman Economy. He is an Independent Director
– Tax and Country Leader ‑ Markets & on the Board of one other company.
Industries of Pricewaterhouse Coopers, He is a Fellow member of The Institute of
India. He was earlier Chairman of Ernst & Chartered Accountants of India and holds
Young India (EY). He was the Country Head a B.Sc. (Hons) from University of Bombay.
of the Tax & Business Advisory practice of

CORPORATE OVERVIEW OUR BOARD OF DIRECTORS
Mr. Parag Shah Force, CII National Committee on Renewable

Independent Director Energy, American Alumni Association in
addition to other external associations. He is
Mr. Parag Shah [DIN 00374944] is an
part of the CII National Healthcare Council.
Independent Director on the Company’s
He is also an angel investor and is on the
Board with effect from January 22, 2019.
advisory board of Trustees of the IndUS
He is part of the Group Executive Board,
Entrepreneurs, Mumbai (TiE). Mr. Shah
Mahindra Group and Managing Partner of
holds a BS degree in Computer Engineering
Mahindra Partners, the Private Equity and
from the Illinois Institute of Technology
Venture Capital division of the group. In a
with special electives in Psychology and
career spanning 20 years, Mr. Shah has held
Manufacturing Technology and is a graduate
various positions with the Mahindra Group
of the General Management Program from
and is a Director on several Group companies.
Harvard Business School. He was recognised
He has extensive experience in building new
by The Economic Times and Spencer Stuart
businesses, start ups, turnarounds, joint
as India’s Top 40 Business Leaders under the
ventures and mergers & acquisitions. He is
age of 40. He was also featured by India Today
the Group lead for business representation
as ‘Leader of Tomorrow’ in their anniversary
in Israel and is also an Executive Committee
issue. Mr. Shah is affiliated with various NGOs
member of various councils of Mahindra
such as Sabarkanta Relief Committee and
Learning University. Mr. Shah has been an
S&G Charitable Trust. He was also a Founder
Executive Committee Member of the CII
Director of ‘Executives Without Borders’, an
National Committee on Private Equity and
NGO based in USA.
Venture Capital, FICCI Solar Energy Task
Ms. Roshni Nadar Malhotra sustainable ecosystems through strategic

Independent Director partnerships and collaborations with all
stakeholders. Ms. Malhotra is a member
Ms. Roshni Nadar Malhotra [DIN 02346621] of the Dean’s Advisory Council at the MIT
is an Independent Director on the Board School of Engineering, USA and a member
with effect from April 27, 2019. She is of the Kellogg School of Management
the Chairperson on the Board of HCL Executive Board for Asia. She serves on
Technologies and Chairperson of its CSR the board of directors of US‑India Strategic
Committee. She is also the CEO of HCL Partnership Forum (USISPF). In recognition
Corporation and a Trustee of the Shiv of her outstanding work both in business and
Nadar Foundation, which is committed to in philanthropy, Ms. Malhotra has received
nation building by driving transformational several honors and accolades including
leadership through education. Ms. Malhotra being featured for the fifth consecutive year
is the Chairperson and driving force in ‘The World’s 100 Most Powerful Women’
behind VidyaGyan, a leadership academy list, compiled and released by Forbes in 2021.
for the meritorious but economically She is an alumnus of the Forum of Young
underprivileged, rural students of Uttar Global Leaders (YGL), a unique and diverse
Pradesh. She is also the Founder & Trustee community of the world’s most outstanding,
of the Habitats Trust, a foundation working next‑generation leaders, an initiative of the
towards protecting habitats and their World Economic Forum. Ms. Malhotra holds
indigenous species. Passionate about an MBA from the Kellogg Graduate School
wildlife and nature, she founded the Trust of Management with a focus on Social
with the mission of creating and conserving Enterprise and Management and Strategy.

Mr. Sanjay Bhandarkar which has also raised a SEBI approved fund
Independent Director for seed stage investing. Mr. Bhandarkar
started his career with ICICI in 1990 and
Mr. Sanjay Bhandarkar [DIN 01260274] is an ISec, the joint venture between ICICI and
Independent Director on the Company’s JP Morgan, and then spent two years
Board with effect from October 31, 2018. with Peregrine Capital. He was part of
He has over three decades of corporate the founding team of Rothschild India in
finance, advisory and investment banking 1998 and played a key role in establishing
experience in the country. He is also Rothschild as a well‑recognised and
currently an independent non‑executive respected pure play advisory investment
director on the boards of other listed banking firm in India. He led the Rothschild
companies, Tata Power Company Limited India business from December 2005 to
and Chemplast Sanmar Limited and also on June 2016 when he stepped down from
the board of other unlisted companies, Tata his full‑time role. Mr. Bhandarkar’s focus
Projects Limited and National Investment at Rothschild was on M&A as well as equity
and Infrastructure Fund Limited, on capital market advisory for Indian and
the latter as a shareholder nominee. international companies. He led the teams
Mr. Bhandarkar is on the Investment that worked closely with the Government
Committee of a SEBI registered seed of India on the 3G and BWA spectrum
capital fund called Contrarian Vriddhi auctions, the first e‑auctions done in India,
as an external IC member. The fund has and on the restructuring of the Enron and
fully invested its corpus. He is also on the GE owned Dabhol power project, one of the
Investment Committee of the US$ 170m largest and most complex restructurings
South Asia Growth Fund II of GEF Capital to date. Mr. Bhandarkar did his MBA from
Partners as an external IC member. He is XLRI, Jamshedpur in 1990.
on the advisory board of 1Crowd, a seed
capital stage online investing platform
Mr. Navneet Munot various asset classes in mutual funds and

Managing Director & segregated accounts. He was also on the
Chief Executive Officer board of SBI Pension Funds (P) Limited.
Mr. Navneet Munot [DIN 05247228] In his previous assignments, he was the
is the Managing Director & Chief Executive Director & Head – multi‑strategy
Executive Officer of the Company since boutique with Morgan Stanley Investment
February 16, 2021. Management and Chief Investment Officer
– Fixed Income and Hybrid Funds at Birla
He has 28 years of rich experience in Sun Life Mutual Fund.
Financial Markets. Prior to joining the
Company, he was the Executive Director Mr. Munot has a Master’s degree in
and Chief Investment Officer of SBI Funds Accountancy and Business Statistics and
Management Private Limited. He was a is a qualified Chartered Accountant. He is
key member of the executive committee a Charter Holder of the CFA Institute and
and was responsible for overseeing CAIA Institute. He has also done Financial
investments of over $150 billion across Risk Management (FRM).

CORPORATE OVERVIEW LEADERSHIP TEAM
Leadership Team
Spearheaded by our Managing Director & Chief Executive Officer, Navneet Munot
and Executive Director & Chief Investment Officer, Prashant Jain, our leadership
team has demonstrated track record on execution across different economic
cycles. Known for setting industry benchmarks around performance and corporate
governance practices, this team has been instrumental in taking HDFC AMC to
greater heights.
Navneet Munot
Managing Director &
Chief Executive Officer
Alok Sheopurkar Leena Vijayvargiy Mudeita Patrao

Head ‑ Human Resources Chief Risk Officer Head – Digital

Leadership Team
Naozad Sirwalla Naveen Gogia Rajiv Maniar

Chief Financial Officer National Sales Head - National Sales Head -
North & West East and South
Sameer Seksaria Shyamali Basu Simal Kanuga

Head ‑ Corporate Head - Products, Marketing Head - Investor Relations,
Client Services & Distributor Engagement PMS Sales & New Initiatives
Supriya Sapre Sylvia Furtado V Suresh Babu

Chief Compliance Officer Company Secretary Head – Operations

CORPORATE OVERVIEW SENIOR INVESTMENT TEAM
Senior Investment Team
Prashant Jain
Executive Director &
Chief Investment Officer
Anand Laddha Anil Bamboli Anupam Joshi Chirag Setalvad

Fund Manager ‑ Equity & Senior Fund Manager ‑ Fund Manager ‑ Senior Fund Manager ‑
Senior Equity Analyst Fixed Income Fixed Income Equity
Gopal Agrawal Krishan Daga Rakesh Vyas Roshi Jain

Senior Fund Manager Senior Fund Manager Fund Manager ‑ Equity & Senior Fund Manager
‑ Equity ‑ Equity Senior Equity Analyst ‑ Equity
Shobhit Mehrotra Srinivasan Mitul Patel*

Senior Fund Manager Ramamurthy Head ‑ PMS Investments
‑ Fixed Income & Head Fund Manager ‑ Equity
of Credit Research
*Reports directly to MD & CEO

Management Discussion and Analysis
A. Economic environment In response to persistent inflation, the central banks, especially

in AEs, have expedited the normalisation of monetary policy
A.1. Global with accelerated tapering of bond purchases, raising policy
The year gone by will be remembered as a year of robust rates, and have started quantitative tightening. In general, in
recovery and return to normalcy despite successive most EMs, central banks are also following the AEs and have
waves of the pandemic sweeping across major countries. started to tighten the monetary policy.
The COVID-19 virus continued to spread at a rapid pace,
infecting over 50 0 million people (since the outbreak) on the On the fiscal side, most governments are likely to substantially
back of frequent mutations. The fast pace of vaccination scale back the pandemic-related fiscal stimulus, which can act
roll-out, however, blunted the impact of the successive as a drag on growth. The post-pandemic stimulus and weakness
waves. The impact on the global economy was moderated in growth resulted in sovereign debt to GDP rising almost to
by continued supportive fiscal and monetary policies, multi-decade highs. This is, however, likely to moderate over
pent up demand, better preparedness of businesses, etc. the next few years aided by low fiscal deficit and robust nominal
Hence, the global economy registered a robust growth in GDP growth.
CY21, with both Advanced Economies (AEs) and Emerging
REAL GDP GROWTH
Markets (EMs) growing at a healthy pace. The recovery was
(%)
led by a strong demand for goods boosting global trade
even though contact-intensive services lagged. 6.0
However, continued supply chain disruptions, robust demand 4.0

recovery outpacing supply, high accumulated savings, rise in
commodity prices, etc. have resulted in persistent inflation. 2.0
The narrative on inflation changed from ‘transitory’ to 0.0

‘transitory for longer’ to ‘no longer transitory’ during the
year. While the Ukraine-Russia war has aggravated the risks, -2.0
inflation is also impacted by factors such as rising wage cost,
tight labour markets and continued COVID-19 related supply -4.0
chain disruptions. CY18-19 CY20 CY21E CY22E CY23-25E
Source: IMF
As % of US GDP
35.0
29.8
30.0
25.0
20.0
15.7 16.2
13.1 12.9
15.0 12.2 11.2
10.0 8.0
6.7 6.1
5.1 4.1 4.6 3.6 2.0
4.6 3.5
3.4 3.0
5.0 2.2
0.0
‑5.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022E
US Fiscal deficit Increase in US Fed balance sheet
Source: IMF, Kotak Institutional Equities

STATUTORY REPORTS MANAGEMENT DISCUSSION AND ANALYSIS
Sovereign gross debt to GDP

(%)
300.0
263.1
259.0 262.5
258.3
250.0
200.0
150.0 134.2 132.6

125.6 123.7
97.3 96.0 102.6

95.2 93.4 95.3
100.0 87.8 82.7
77.8 81.8
73.3
68.1
50.0
Japan US Euro Area UK China
2020 2021 2022E 2023E
Source: IMF
Global commodities have witnessed a strong rally during the Price movement
past two years, driven by swift recovery in demand, which
outpaced resumption in supply. The rally got more legs as 200
the supply chain disruption continued longer than expected
following the outbreak of war between Ukraine and Russia. 160
These countries, individually or together, are amongst
the largest exporters of select natural resources and food 120
items like crude oil, natural gas, precious metal, coking coal,
aluminum, sunflower seeds, fertilisers, etc. Thus the war and 80
sanctions thereon can result in the supply shock sustaining
for longer and hence, prices remaining at elevated levels for 40
an extended period.
0
Global equity markets, which showed resilience in the first
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
half, faced significant headwinds due to the accelerated
normalisation in monetary policies by AEs, elevated inflation
and softening in growth outlook. On a full year basis, the Fao Index Brent Crude CRB Metal
performance of major equity indices was mixed, with the US
and select European countries performing better than the Source: Bloomberg; Prices as on 31 Dec 2019 has been taken as 100
Asian equity indices.
Annual Return of major indices
(%)
100.0
74.5
80.0
55.1
60.0 53.7 54.2
51.1
38.0
40.0
20.2 25.1
18.4
20.0 14.0 11.9 9.8
0.0
(4.0) (4.7)
(20.0) 5.5 13.3
(9.9)
22.5
(40.0) S&P 500 FTSE DAX CAC Nikkei Hang Seng KOSPI Shanghai MSCI EM Index
FY21 FY22
Source: Bloomberg

Bond yields hardened in major AEs as persistent high inflation 10Y Gsec yields trended higher in FY22
raised the likelihood of major central banks reversing the (%)
monetary stimulus. Bond yields continued to trend higher
3.5 4.0
in early FY 22-23 as the market participants factored in
3.0 3.8
aggressive rate hikes by the US Fed over the course of the year.
2.5 3.6
Hawkish commentary by the European Central Bank (ECB) and
3.4
successive rate hikes by the Bank of England (BoE) also aided 2.0
3.2
the rise in yields. 1.5
3.0
1.0
2.8
Going forward, while there are reasons to be optimistic on 0.5
2.6
global growth, the growth rate is likely to normalise closer to 0.0 2.4
the pre‑pandemic trend. The key drivers of global growth are -0.5 2.2
likely to be pick-up in activity in the contact-intensive services, -1.0 2.0
accumulated household (HH) savings in AEs, likely improvement
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
in investment spending, etc. However, the Ukraine-Russia war
and consequent sanctions, resilient inflation, high commodity
and energy prices, slowdown in China, etc. pose downside risks US Germany Japan China, RHS
to global growth. Source: Bloomberg
A.2. India Gross Domestic Product

(INR, Trillion)
For India, FY 21-22 was a year of recovery that was intermittently
interrupted by two major COVID-19 waves. However, the 175.0
vaccination drive, which started in late FY 20‑21, picked up 165.0
pace and by year end, over 80% of India’s adult population was
155.0
vaccinated. This helped reduce the social as well as economic
impact of the Omicron wave in Q4FY22. 145.0
135.0
Growth: India witnessed robust recovery in FY 21-22, with the GDP
estimated to grow by ~9%, albeit on a weak base of FY 20‑21, which 125.0
saw the GDP contract by 6.6%. The accommodative monetary and 115.0
fiscal policy, reopening of the economy, robust exports and pent-up
demand supported the recovery. However, while the real GDP has 105.0
Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21
recovered to pre-pandemic level, it is still significantly below its pre-
India real GDP (4QMA)
pandemic growth path (refer adjacent figure).
Source: Edelweiss Financial Services
The divergence in growth was evident across sub-segments,
with investment spending and exports performing better while manufacturing activity recovered strongly. Although
than private consumption. Imports also grew at a faster the services sector continues to lag, it showed signs of
pace, indicating gradual normalisation in domestic demand. stabilisation in the recent quarter as activity in contact-
On the GVA side, the agriculture sector showed resilience intensive services improved.
YoY Change (%) 9MFY21 9MFY22 9MFY21 9MFY22

GDP -9.9 10.6 GVA -8.4 9.9
Private final consumption (PFCE) -10.2 10.1 Agriculture and allied activities 3.5 3.2
Government final consumption (GFCE) -4.0 2.1 Industry -9.3 14.3
Gross capital formation -19.4 29.6 Manufacturing -6.2 14.3
Gross fixed capital formation -17.5 20.7 Construction -16.8 16.5
Services -11.1 9.6
Exports of goods and services -13.5 26.3 Trade, hotels, transport, etc. -26.4 13.8
Imports of goods and services -21.9 42.8 Public administration, defence and -8.0 14.6
other services (PADO)
GDP growth ex GFCE -10.6 11.7 Core GVA (GVA ex Agriculture and PADO) -10.9 10.6
Source: CMIE

Beyond the headline numbers, the impact of the pandemic,

India’s structural growth drivers
and consequent disruption, has impacted various strata of
the Indian economy differently and the recovery has been • Excellent demographics and large availability of skilled,
K-shaped. Generally, a K-shaped recovery reflects a situation young, English speaking and competitive manpower (~65%
where high to middle income HHs and large firms recover at of Indian population is in 15-59 years age bracket)
a faster rate than smaller businesses and lower income HHs. • Abundant natural resources except oil / copper, etc.
The pandemic has impacted MSMEs and lower income groups
more and the recovery of these segments is still incomplete. • Global leadership in services industry (IT, ITeS, etc.)
To address the aforesaid, government and monetary • Low penetration of consumer goods, improving affordability
authorities have announced many targeted measures over long term and large unmet needs of infrastructure
including extending free foodgrain distribution, government
guaranteed credit to pandemic impacted sectors, incentives • Rapid adoption of digital and a vibrant startup ecosystem
for targeted credit, etc. • Better coordination between Government and business;
Government’s role as an enabler of business increasing and
Looking forward, the growth outlook for FY 22-23 is likely to presence in businesses to reduce over medium to long term
be moderated by near-term challenges. These include:
• Government’s thrust on investment spending: Over the
• Rise in commodity, especially energy prices: Elevated past few years, the Central Government has pivoted its
commodity and energy prices, of oil in particular, are likely focus on capital and infrastructure spending as this tends
to adversely impact HH consumption spending, especially to have a multiplier impact on growth. The key focus areas
of low-income HHs. More than 75% of Indian HHs earn of spending include roads, railways and housing. This has
less than ` 4 Lakh per annum (for 2019-20, Source: UBS). been complemented by initiatives/programs such as the
Moreover, energy consumption through transportation, Jal Jeevan Mission, National Infrastructure Pipeline (NIP),
cooking fuel, electricity, etc. forms a large proportion (~10- setting up of Development Financial Institutions (DFIs),
20%) of the HH spend. Thus, higher energy prices are likely National Monetisation Pipeline (NMP) etc.
to result in lower discretionary expenditure.
Central Government Capex outlay
• Uneven recovery from pandemic: The pandemic has (as % of GDP)
impacted the unorganised segment, especially services, 2.9
more than the organised segment. Recovery was led by 3.0%
2.6
improvement in the manufacturing and formal sections
of the economy. As the services sector accounts for over 2.5%
2.2
50% of the GDP and employs over 32% of the labour force,
the lingering impact is likely to weigh on near-term growth. 2.0%
1.7
1.8 1.8
1.7 1.6 1.7
1.6 1.5
• Slowdown in exports: Global conditions have turned 1.5%
adverse as merchandise trade is expected to slow down
in view of the surging energy prices, monetary policy 1.0%
tightening and expected softening in growth in most AEs.
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22RE
FY23BE
This is likely to slow down merchandise exports, which
have been supporting growth in FY 21-22.
Source: CMIE
• Unwinding of monetary stimulus: The accelerated rollback
of monetary stimulus by US Fed is likely to increase the cost • Push for ‘Make in India’: The rise in labour and compliance
of capital and weigh on capital flows to EMs, including India. costs in China have been driving many multinational
Moreover, the RBI has recently shifted its policy priority companies (MNCs) to diversify their manufacturing base
from supporting growth to controlling inflation, and raised from China to other EMs over the past few years. The shift
the repo rate by 40 bps to 4.4%. The pull back in monetary is likely to accelerate post pandemic as many companies
stimulus is likely to accelerate going forward. acknowledge the risks of high dependency on a single
country. To attract these MNCs, the Government of
In view of the above, the RBI has also revised down its India has undertaken multiple reforms/measures such as
FY 22-23 growth forecast from 7.8% to 7.2%. However, concessionary tax rates, increasing sectoral FDI limits,
beyond the near-term challenges, the underlying improving ease of doing business, etc. It has also launched
structural growth drivers of India remain intact and are many Production Linked Incentive (PLI) schemes for select
likely to boost growth over the medium to long term (refer sectors that are progressing well, and the results are likely
adjacent table). Further, the following developments to be visible in the next couple of years.
should support growth.

• Favourable conditions for private capex: The broad- In FY 21-22, actual gross tax collections are expected to
based improvement in profitability of core sectors such beat budget estimates by over 20% i.e. ` 5 trillion (~2%
as metals, textiles, cement, etc. along with low leverage, of GDP). Non-tax revenues also improved, given higher
bodes well for the pick-up in private capex over the than anticipated dividend received from the RBI. This was,
medium term. Besides, the banking sector balance sheets however, offset by lower-than-expected capital receipts due
are also in the best of health, with adequate capitalisation, to a shortfall in the divestment proceedings and higher outgo
the corporate NPA cycle being behind and with asset on capital expenditure, food & fertiliser subsidies and transfer
quality being relatively less impacted by the pandemic- to state governments.
induced disruptions.
Centre’s Fiscal deficit
(TTM, as % of GDP)
• Housing sector revival: India’s real estate sector is
favourably placed. Affordability of real estate is among 10.0%
the best in the last 25 years, with moderation in property 9.0%
7.5%
cost and rise in annual income. Improvement in the sector 8.0%
is evident from the pick-up in stamp duty collections and 7.0%
property registrations in major states since the pandemic. 6.0%
5.0%
Affordability ratio 4.0%
(Home loan payment / Income ratio) 3.0%
(%) 2.0%
1.0%
80
Feb‑15
Feb‑16
Feb‑17
Feb‑18
Feb‑19
Feb‑20
Feb‑21
Feb‑22
60 Source: CMIE
As evident from the FY 22-23 budget, going forward, the

40
government estimates fiscal deficit to moderate only
marginally from 6.9% to 6.4% of GDP. The government is thus
20 likely to gradually consolidate its fiscal deficit. While initially,
the government appeared to have underestimated revenues
0
and over-estimated spending in its FY 22-23 budget, we
believe that given the higher food & fertiliser subsidies
FY01
FY03
FY05
FY07
FY09
FY11
FY13
FY15
FY17
FY19
FY21
(announced in April 2022), the fiscal deficit is likely to be closer

Source: Jefferies to the budget estimates.
• Vibrant startup ecosystem: Indian start-ups have External sector: India’s external sector swung back to
witnessed significant progress over the past few normalcy in FY 21-22 on the back of normalising global and
years across sectors such as consumer, e-commerce, domestic economy. The current account, which turned
marketplace, etc. Fast-paced digital adoption, especially surplus in FY 20‑21 is expected to be in deficit again (~1.5%
after the pandemic, has accelerated growth. The start- of GDP) in FY 21-22. While exports of goods and services
up ecosystem contributes to growth in multiple ways – continued to grow at a healthy pace during the year, the
attracting capital (including foreign capital), generating normalisation of domestic demand, higher crude prices, etc.
employment, boosting innovation, improving productivity, resulted in imports growing at a rapid pace.
etc. Given India’s large talent pool, large domestic market
and ample risk capital, the start-up ecosystem is expected Movement of major currencies vs USD in FY22
to flourish and become an important driver of growth. -9.0 Japanese Yen
-6.9 Russian Ruble
In view of the aforesaid factors, outlook on the Indian economy -6.6 South Korean Won
remains positive over medium to long term. -6.0 Euro
-4.9 Pound
Fiscal situation: The central government’s fiscal deficit -3.5 Indian Rupee
moderated substantially in FY 21-22 to 6.9% (FY22RE) from -1.6 AUD
9.2% a year ago. Both direct and indirect tax collections 1.1 Indonesian Rupiah
surprised positively and registered a strong growth on the 3.4 Chinese Yuan
back of improving economic activity, better GST compliance, 5.2 DXY
normalisation in fuel consumption and higher inflation. 18.8 Brazillian Real
-12.0 -7.0 -2.0 3.0 8.0 13.0 18.0 23.0
Source: Bloomberg
In comparison, the capital account was better placed than schemes, the opportunity to increase market share in the
last year driven by steady FDI and higher foreign borrowings, global merchandise trade, competitive wage costs, supportive
despite large FPI outflows in the second half of the fiscal year. government policies, etc. are expected to support growth.
The additional Special Drawing Rights (SDR) allocation by the
8%
International Monetary Fund (IMF) also aided the improvement
in the capital account. Thus, Balance of Payments (BoP) was 7%
expected to end the year with a comfortable surplus. This 6%
resulted in the Rupee outperforming most major currencies 5.9%
5%
during FY 21-22. Moreover, two consecutive years of strong 4.2%
4%
BoP have helped the RBI to accumulate forex reserves, which
have increased from $475 Billion as on March 31, 2020 to $617 3%
Billion as on March 31, 2022. 2%

1%
Going forward, the external sector is likely to face headwinds
Sep-15
Jan-16
May-16
Sep-16
Jan-17
May-17
Sep-17
Jan-18
May-18
Sep-18
Jan-19
May-19
Sep-19
Jan-20
May-20
Sep-20
Jan-21
May-21
Sep-21
Jan-22
as elevated commodity prices, especially of crude oil, robust
domestic demand, and softening export growth are likely to CPI Core CPI
weigh on the current account. Steady improvement in software LTA of 5 Years prior Post Covid Average
exports is likely to cushion the impact only to a certain extent. On Source: CMIE
an overall basis, current account deficit (CAD) is likely to widen
in the range of ~2.5% to 3% in FY 22-23, depending on the crude Equity markets
oil price. Further, policy rate hikes and quantitative tightening
Indian equities scaled new highs in FY 21-22 and NIFTY 50/S&P
by US Fed is likely to weigh on capital flows to EMs, including
BSE SENSEX delivered robust returns. In line with most global
India. In view of the high CAD and soft capital account, BoP is
indices, Indian equity markets performed well during the
likely to turn into deficit in FY 22-23. However, while the Rupee
first half of the fiscal year and witnessed slight correction in
might witness depreciating bias (especially if elevated oil prices
the latter half. The key drivers of equity markets were robust
sustain), the RBI’s large foreign exchange reserves should help
growth in corporate earnings, healthy global and domestic
guard against any significant external shock.
economic recovery, low cost of capital, etc. However,
concerns over China’s real estate sector, global inflation
Inflation: As with AEs, India’s Consumer Price Index (CPI) was
triggering accelerated monetary tightening, delay in supply
higher than anticipated and averaged 5.5% in FY 21-22 on
chain normalisation, sanctions on Russia, etc. resulted in
an elevated base of 6.2% in FY 20‑21. While the supply chain
indices moderating a tad during the second half. Mid caps and
disruption continued to haunt, swift demand recovery, higher
Small caps outperformed Large caps. All the major sectors
input and global commodity prices, easy financial conditions,
delivered positive returns, with Power, Metals, Information
etc. resulted in the CPI surpassing expectations. While average
Technology, Capital Goods and Oil & Gas being the best-
food & beverage inflation moderated to 4.3% (FY 20‑21: 7.4%)
performing sectors.
on the back of a favourable base, select components such as
edible oil, meat and fish, pulses, spices, etc. registered strong
However, the performance of major global equity indices was
YoY growth. Rise in the prices of LPG, kerosene, firewood chips,
mixed, with the US and select European Indices ending the
etc. resulted in a surge in fuel inflation. Core inflation averaged
year in positive while most of the Asian and MSCI EM indices
~6% in FY 21-22 (FY 20‑21: 5.5%) and was broad based during
delivered negative returns. The tables that follow provide
the year. The rise in raw material prices (like cotton, steel,
details of the performance of key domestic and global indices.
aluminium, etc.), muted industrial production, sector-specific
shortages and surge in demand resulted in manufacturers % Change in Indices FY21 FY22
and retailers raising prices. Going into FY 22-23, the RBI has S&P BSE India Auto 107.1 8.1
revised its average inflation forecast to 5.7% in April 2022 S&P BSE India Bankex 70.3 11.2
(from 4.5% in Feb 2022) due to rise in energy, food and other S&P BSE India Capital Goods 92.1 30.4
commodity prices. S&P BSE India FMCG 25.6 3.6
S&P BSE India Healthcare 75.6 14.0
In summary, in the near term, the growth rate is likely to S&P BSE India Metal 151.2 55.9
moderate due to weakness in the external sector, inflation, S&P BSE India Power 79.6 63.4
tightening financial conditions and a K-shaped recovery. S&P BSE India Oil & Gas 47.9 26.5
However, looking beyond FY 22-23, the secular growth drivers S&P BSE India IT 106.7 37.1
of the Indian economy are intact and are likely to support S&P BSE SENSEX 68.0 18.3
NIFTY 50 70.9 18.9
healthy growth over the medium to long term. India inherently
NIFTY Midcap 100 102.4 25.3
has a strong growth potential, given the large underpenetration
NIFTY Smallcap 125.7 28.6
of consumer durables and investment potential due to large
unmet infrastructure needs. Further, measures such as PLI Source: Bloomberg

% Change in Indices FY21 FY22 Aggregate net profit as % of GDP

S&P 500 53.7 14.0 7%
FTSE 18.4 11.9
6%
DAX 51.1 (4.0)
5% 4.7%
CAC 38.0 9.8
Nikkei 54.2 (4.7) 4%
4.3%
Hang Seng 20.2 (22.5) 3%
KOSPI 74.5 (9.9) 2%
Shanghai 25.1 (5.5)
1% 1.6%
MSCI Emerging Market 55.1 (13.3)
0%
Source: Bloomberg
F Y00
F Y02
F Y04
F Y06
F Y08
F Y10
F Y12
F Y14
F Y16
F Y18
F Y20
F Y22TD
F Y23E
Equity market trends in FY 21-22
• Broad based rally: FY 21-22 was the second consecutive Source: ICICI Securities; For the FY22TD data point, Mar’22 quarter
profit numbers available till 27th April 2022 are updated and the rest is
year of double digit returns in NIFTY 50. Notably, the rally trailing twelve months till Dec’21.
in NIFTY 50 was broad based and the contribution from the
top 5 stocks accounted for less than 50% of the returns • Institutional flows: FPIs, on a net basis, sold equities worth
in the past two years. Moreover, the broader market $18.5 Billion in FY 21-22 as compared to being net buyer
outperformed in FY 21-22 as Small cap and Mid cap stocks of $37 Billion the year before. Notably, most of the selling
registered higher gains than Large caps. happened in the second half of the year, wherein FPIs sold
~$20 Billion worth of equities. In comparison, domestic
65.0%
equity-oriented mutual funds witnessed net inflows of
63.0%
~` 2,66,000 Crore (~$35 Billion) in FY 21-22 vis-à-vis net
61.0% outflows of ~` 62,700 Crore (~$8 Billion) during the same
59.0% period last year.
57.0%
• Rise in retail participation: Participation of retail investors
55.0%
in equities increased substantially, as reflected in rise of
53.0%
Broad Market
intraday-settlement trading. The steady increase in retail
51.0% outperforming NIFTY volumes is also corroborated by the sharp increase in new
outperforming
49.0%
demat accounts (rising to over 9 Crore from 4 Crore before
COVID-19) over the past couple of years as the penetration
47.0%
of discount brokerages increased.
45.0%
Mar-04
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18
Mar-19
Mar-20
Mar-21
Mar-22
100
90
NIFTY Market Cap to To‑ Average
tal Market Capitalisation 80
Source: Bloomberg 70
60
• Robust corporate earnings: On an aggregate basis,
50
corporate profitability of listed companies witnessed
strong improvement on the back of better pricing 40
power, healthy demand, impact of cost rationalisation 30
measures undertaken post pandemic, buoyant exports,
20
etc. Moreover, profitability of the banking sector, which 15 16 17 18 19 20 21 22
was a major drag in the past, improved significantly as the
TTM Cash Volume (% of market Cap)
corporate NPA cycle was behind and pandemic induced
Non Institution % to Cash Volume
NPAs remained in within reasonable range. These factors,
to a large extent, negated the impact of higher input Source: Bloomberg, Motilal Oswal Financial Services
prices. Consequently, corporate profits (of listed space)
as a % of GDP trended higher during the year.

90%
Intra-settlement trading as a % of Equity market valuations and Outlook: The rally in the equity
cash volumes markets over the past two financial years has exceeded
85% expectations. As on March 31, 2022, NIFTY was trading at a
Price to Earnings ratio of 18.6x, based on FY24E estimates.
80% While this is moderately higher than its historical average,
it should be viewed in the context of the low cost of capital,
75% ample liquidity and robust corporate earnings outlook. India’s
market cap to GDP (based on CY23E GDP) at ~90% is also
70% slightly higher than its long-term average.
65%
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Source: Bloomberg, Morgan Stanley
160 25
149
140
20
120 112
102
100 99 98 95
92 92 15
88
No. of times
81
75 77 77
80 72 71
69
65
61
55 56 10
60
48
40
35
30
26 5
20
0 0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022E
2023E
Mcap/GDP (%) P/E (X, HRS)
Source: Kotak Institutional Equities
Further, the broad-based rally in equities over the past two years has resulted in most sectors trading higher or close to their
long‑term average valuations.
12 month forward Price To Earnings
31-Mar-21 31-Mar-22 LTA Discount / Premium (%)^
Consumer Discretionary 63.0 65.3 38.8 68.2
IT services 25.5 28.1 18.2 54.4
Auto 22.0 22.2 15.9 39.9
Cement 34.1 26.5 19.3 37.5
Consumer staples* 50.7 46.9 36.1 29.7
Oil and gas$ 14.8 13.7 11.5 19.2
Pharma 24.7 24.3 21.3 14.3
Private Banks@ 2.7 2.5 2.5 0.0
PSU Banks@ 0.9 1.1 1.2 -14.0
Electric utilities 8.1 10.6 13.3 -20.7
Tobacco 16.1 17.9 22.7 -21.0
Metals& 9.5 7.7 10.0 -23.5
Source: Kotak Institutional Equities. Stocks are part of Kotak Institutional Equities universe. LTA – 10 Year average.
Cells in green are sectors which are trading at premium while in red are ones which are trading at discount relative to long term average. All figures are
calculated based on 12 months forward estimates. *ex tobacco; ^to Long term (LT) average, @-Price to Book value. & - P/E is a misleading indicator as
earnings reflect cyclical peak and hence the sector appears at a discount to LTA.
$
Oil & Gas sector PE is high mainly due to one company. Excluding that, the multiple is 5.5x vs 10 year average multiple of 9.1x

Overall, the equity markets appear reasonably valued and Policy Committee (MPC), in its scheduled policy meeting
returns, over the long term, are likely to be guided by nominal in April 2022, announced that it will prioritise inflation over
GDP growth. Over the medium to long term, equities hold growth. The RBI also introduced Standing Deposit Facility
promise in view of strong corporate profitability, sustained (SDF) at 3.75%, which has effectively restored the LAF rate
economic growth, strong balance sheet of banks etc. corridor to 50 bps from 90 bps earlier. More importantly, in
Resurgence of COVID‑19 cases, slowdown in China, sustained an unscheduled meeting on May 4, 2022, MPC raised the repo
high crude oil prices, sharp increase in US yields, continued FPI rate by 40 bps to 4.4% and raised the CRR by 50 bps to 4.5%.
selling, etc. are the key risks in the near term. The urgency of the RBI actions indicates that the central bank
is increasingly uncomfortable with the high retail inflation
and is likely to proactively use policy tools to bring it down,
Debt markets including withdrawing liquidity and hiking policy rates.
The year FY 21‑22 was a relatively difficult one for the Indian
fixed income markets with 10Y Gsec bond yields ending
the year higher by ~67 bps at 6.84%. Gsec yields traded in a Key trends during FY22
narrow range during the first half despite multiple factors, Ample surplus liquidity: The banking system liquidity
including high inflation, strong recovery, pick up in global remained in ample surplus during the entire year, driven by
yields, etc., turning adverse. This was primarily because of G‑SAP (Government Securities Acquisition Program) 1.0
the RBI’s regular intervention, easy financial conditions and and 2.0 conducted by the RBI, purchase of foreign exchange
stronger‑than‑expected government revenues resulting and muted credit growth vis‑à‑vis the deposit growth. The
in lower‑than‑expected market borrowings. However, liquidity surplus averaged over ` 6.5 Trillion during FY 21‑22
bond yields started to inch up in the second half and surged compared to ` 4.7 Trillion a year ago. The high liquidity kept
substantially following the FY 22‑23 budget in February 2022. the yields at the shorter end anchored, thus steepening the
This was driven by accelerated policy normalisation by US curve. However, the recent step to raise CRR by 50 bps is likely
Fed, strong inflation momentum and substantial reduction in to drain out liquidity to the tune of ~` 87,000 Crore. Further,
the RBI’s intervention. However, ample liquidity in the system the RBI has hinted that it is likely to bring down the banking
kept the short‑end yields relatively anchored and the Gsec system liquidity to ~1.5% of the Net Demand and Term
yield curve steepened moderately. Liabilities (NDTL) in a gradual manner.
Steepness of soverign yield curve Ample surplus liquidity

(` billion)
8.5
10,000 6.0%
7.5
8,000 5.0%
6.5 4.0%
6,000
3.0%
5.5 4,000
2.0%
4.5 2,000
1.0%
- 0.0%
3.5
-2,000 -1.0%
2.5
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
3M
6M
1Y
2Y
3Y
4Y
5Y
6Y
7Y
8Y
9Y
10Y
11Y
12Y
13Y
14Y
15Y
Maturity bucket Interbank Liquidity

Mar-20 Mar-21 Mar-22 5-May-22 Interbank Liquidity as % of bank deposits (RHS)
Source: Bloomberg. The data is as of last day of each month. Source: CMIE, RBI
Entering FY 22‑23, the yields have risen by another 56 bps Corporate bond spreads compresses: The demand for
to 7.4% (as of May 5, 2022). The bump up in yields is driven corporate bond issuances outstripped supply and resulted in
by the sudden shift in the RBI’s policy pivot from growth corporate bond spreads narrowing during FY 21‑22. Further,
to inflation, and expectations of accelerated rate hikes the stable credit environment, with no major negative credit
and liquidity withdrawal over the next year. The Monetary event, also increased lenders’ confidence.

Corporate Bond spreads A3. Industry environment

3.0
Mutual fund folios
2.5
The MF industry recorded a 32% increase in the number of
2.0 folios to 12.95 Crore for the year ended March 31, 2022 from
1.5 9.79 Crore for the year ended March 31, 2021. Of the total,
12.87 Crore were folios from individuals, up 32% YoY. Unique
1.0
investors identified on PAN increased by 48% to 3.37 Crore.
0.5 The industry has more than doubled the number of folios in
- last 5 years, adding 7.41 Crore net new folios.
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
Jan-22
Mar-22
Jan-20
MF INDUSTRY FOLIOS*
(` Crore)
AAA Rated Over 3 Yr Gsec AA Rated Over 3Yr Gsec 12.95
Source: Bloomberg
9.79
8.97
8.25
Muted FPI flows: Net FPI inflows during FY 21‑22 stood at 7.13
$2.2 Billion as against net outflow of $2.2 Billion in the
year prior.
Outlook
The sudden shift in the RBI’s policy focus toward inflation FY18 FY19 FY20 FY21 FY22
and the urgency of its policy action in the first two months of
FY 22‑23 surprised market participants. Moreover, the RBI Source: AMFI
appeared increasingly concerned about the inflationary *Data is as on March 31 for respective years
pressure intensifying although it is relatively comfortable
with the growth trajectory. Hence, market participants
SIP flows
factored in that the RBI can proactively roll back monetary
stimulus through withdrawal of liquidity and policy rate hikes. SIP flows remained strong despite the headwinds emanating
In response, yields rose across the curve with the short end from the successive waves of the pandemic and global
rising more. uncertainties. The MF industry witnessed 2.66 Crore new
SIP registrations and annual SIP flows of ` 1,24,566 Crore in
Going forward, elevated commodity and energy prices, large FY 21‑22, up 30% from FY 20‑21.
government borrowing programs, resilient CPI and WPI, high
SLR holding of banks, accelerated tightening by major global MF SIP Flows
central banks etc. are likely to put upward pressure on yields. (` Crore)
The possibility of the RBI expediting the pace of pull back in 1,24,566
monetary stimulus should also add to the pressure. The 1,00,084

92,693 96,080
chances of lower fiscal deficit appear dim too as the outgo on
food & fertiliser subsidy might exceed the gain expected due 67,190
to higher tax collections.
The aforesaid factors are likely to drive yields higher going

forward. On the flip side, the ~1% increase in the 10Y Gsec
yields in CY22 (upto May 5, 2022) seems to have priced in the
impact of most of these factors to a material extent. The
medium‑term outlook of yields will be driven by factors like FY18 FY19 FY20 FY21 FY22
the movement in US yields, inflation and commodity prices, Source: AMFI

especially post Ukraine‑Russia war.

Closing Assets Under Management Demographics

Assets Under Management (AUM) rose 20% to ` 37.6 Lakh As of March 31, 2022, individual investors contributed to 55%
Crore, as of March 31, 2022, as against ` 31.4 Lakh Crore, as of of the industry monthly average AUM (MAAUM) of ` 37.7 Lakh
March 31, 2021. Equity‑oriented AUM grew 39% to ` 18.1 Lakh Crore while institutional investors contributed the remaining
Crore while non‑equity‑oriented AUM increased to ` 19.5 Lakh ` 16.9 Lakh Crore.
Crore from ` 18.4 Lakh Crore. The sharp growth in equity AUM
can be attributed to both increased net inflows and growth in MAAUM by investor type
the market. During FY 21‑22, the IISL NIFTY 50 TR and IISL (` in Lakh Crore)
NIFTY 500 TR indices gained 20% and 22%, respectively. 37.7
32.2
Closing AUM 24.6 24.7
22.7
(` in Lakh Crore) 17.3
20.8
16.9
12.9 14.9
11.7 13.5
37.6 11.0 11.0 11.8
31.4
23.8 22.3
21.4 19.5
18.4 18.1 FY18 FY19 FY20 FY21 FY22
12.1 13.6 14.0 13.0 Individual Institutional Total
9.2 10.2
8.3
Source: AMFI
FY18 FY19 FY20 FY21 FY22 MAAUM was split in the ratio of 83:17 between the top 30
cities (T-30) and beyond the top 30 cities (B-30). Contribution
Equity Non-Equity Total
from B‑30 to total MAAUM has remained relatively constant.
Source: AMFI
Although B‑30 accounts for 17% of total MAAUM, contribution
to equity MAAUM is 27%.
Net flows and Annual Average AUM
During FY 21‑22, the industry saw net inflows to the tune of MAAUM by cities
` 2.68 Lakh Crore in equity‑oriented funds, ` 0.25 Lakh Crore in (` in Lakh Crore)
liquid funds while debt funds recorded outflows of ` 1.63 Lakh
37.7
Crore, and Others (including arbitrage funds, Exchange
32.2 31.5
Traded Funds (ETFs) and Fund of Funds (FoF)) saw net inflows of
24.6 26.9
` 1.17 Lakh Crore. Annual Average AUM (AAAUM) grew 28% to 22.7
24.7
20.8 20.9
` 36.5 Lakh Crore from ` 28.5 Lakh Crore in FY 20‑21. AAAUM 18.4
for equity‑oriented funds increased by 48% to ` 16.0 Lakh
Crore from ` 10.8 Lakh Crore while that for non‑equity assets 6.2
4.3 3.8 5.2
rose 16% YoY. 3.8
Net flows FY18 FY19 FY20 FY21 FY22

(` in Lakh Crore)
B-30 T-30 Total
Source: AMFI
3.00 2.72 2.77 2.68
2.61 2.47
2.15 Indian MF industry trends
2.00
Mutual fund AUM in India has recorded a CAGR of 16.4% over
1.19 1.10 the past five years, with equity AUM witnessing a CAGR of
1.00 0.67 0.87
23.5%. The growing importance of financial savings among
0.11 -0.09 0.20 Indian households, increasing awareness and education,
-0.63 -0.21
0.00
strong distribution platforms, ease of transactions through
digitisation and popularity of instruments like SIPs have
-1.00
contributed to the rising participation of domestic individual
FY18 FY19 FY20 FY21 FY22
investors. The MAAUM of individual investors reached ` 20.8
Equity Non-Equity Total Lakh Crore in March 2022, registering a CAGR of 19.5% since
Source: AMFI
March 2017.

Net inflows over the past five fiscal years have been ` 9.30 partners. In addition, a wide and robust distribution network,
Lakh Crore, of which ` 6.52 Lakh Crore have flowed in nationwide presence, class‑leading digital infrastructure will
equity‑oriented schemes. Meanwhile, fixed income products, continue to be the backbone of our growth.
including liquid funds, have been popular among corporate
and institutional investors as well as retail and high net We also provide portfolio management and separately
worth investors. managed account services to HNIs, family offices, domestic
corporates, trusts, provident funds, and domestic & global
Monthly SIP flows grew almost 3 times from March 2017 to institutions. As of March 31, 2022, aggregate assets under
` 12,328 Crore in March 2022. The number of SIP accounts these services were at ` 9,215 Crore.
in March 2022 was 5.28 Crore, up from 1.35 Crore in March
2017. SIPs enable regular investing, coupled with the benefits B2. Operational performance
of rupee cost averaging, and are typically sticky long‑term
inflows and lend visibility and predictability to AUM growth. Assets under management
Our closing AUM, as of March 31, 2022, rose 3% to ` 4.08 Lakh
In India, the Asset Management industry has become a Crore from ` 3.95 Lakh Crore as of March 31, 2021. Actively
significant part of the financial services sector as well as the managed equity‑oriented AUM rose from ` 1.65 Lakh Crore
overall economy. If we look at annual financial household to ` 2.00 Lakh Crore. Total AAAUM rose 14% to ` 4.37 Lakh
savings, there’s no visible limit to the potential investable Crore from ` 3.84 Lakh Crore. AAAUM for actively managed
capital. Mutual funds are well positioned to tap this opportunity equity‑oriented schemes increased by 28% to ` 1.89 Lakh
and be the vehicle of choice for funneling household savings Crore from ` 1.48 Lakh Crore.
into investments.
Closing AUM
Healthy growth of mutual fund AUM in India (` in Lakh Crore) (` in Lakh Crore)
5‑Year CAGR: 16.4% 3.95
4.08
3.44
3.19
2017 2018 2019 2020 2021 2022 2.92
Equity AUM 6.28 9.22 10.21 8.26 13.00 18.08 2.25 2.091.98
1.97
Debt AUM 7.61 7.99 7.30 7.76 10.58 9.51 1.79 1.70
1.50 1.42 1.65
Liquid AUM 3.14 3.36 4.36 4.15 4.08 4.49 1.22
Other AUM 0.52 0.79 1.93 2.09 3.77 5.48

Total 17.55 21.36 23.80 22.26 31.43 37.57
Source: AMFI. Data as of March 31 each year. March 2017 has been taken FY18 FY19 FY20 FY21 FY22
as the base for CAGR calculation.
Equity Non-Equity Total
Business review
Unique investors and live accounts
B1. Overview
We remain one of the most preferred choices for individual
HDFC AMC is the investment manager to HDFC Mutual Fund
investors, with a market share in assets at 12.5%. We had
with a closing AUM of ` 4.08 Lakh Crore and total AAAUM
about 58 Lakh unique investors at the close of the year, of
of ` 4.37 Lakh Crore, as of March 31, 2022. Equity‑oriented
the MF industry total of 3.37 Crore. This implies that 17 out
closing AUM accounted for ` 2.09 Lakh Crore, with
of every 100 MF investors in India are invested in one or more
non‑equity‑oriented AUM contributing the rest.
HDFC Mutual Fund schemes. Our market share in total closing
AUM and actively managed equity‑oriented funds stood
We have a diversified product mix which caters to the needs of
at 10.8% and 11.3%, respectively. Equity‑oriented assets
our investors by taking various factors into consideration such
formed 51% of our total AUM. The number of live individual
as long‑term and short‑term time horizons, high risk and low
accounts we serve stood at 97.7 Lakh, as on March 31, 2022.
risk, multiple asset classes including gold, solutions oriented,
HDFC AMC processed 3.89 Crore systematic transactions
asset allocation and hybrid products. Our comprehensive suite
between April 2021 and March 2022, amounting to ` 12,970
of savings and investments products allows us the flexibility to
Crore. About 86% of all systematic transactions at the time
navigate market cycles, address market fluctuations, reduce
of signing up are for a period of over 5 years and about 76% for
concentration risks and work with a diverse set of distribution
over 10 years.

Number of investors Covid‑19 Pandemic

(Lakh) COVID‑19 was declared a pandemic in March 2020 and since
then it has had a sizable impact on the economies of various
94
99 countries. Nations across the globe at this juncture seem to
91 90
81 be returning to normalcy as a result of waning infection levels.
An aggressive vaccination drive by the government in India
58 has led to significant improvement in the situation which has
53 56 53
47 provided a pathway to the normalization of economic activity.
However, the situation will have to be monitored till the
pandemic is finally put to rest.
While the Company’s operations have shown resilience, the

extent to which the pandemic may impact its future results will
FY18 FY19 FY20 FY21 FY22 depend on ongoing developments. The Company continues
to closely monitor material changes in economic conditions,
Unique investors Live accounts
markets and the operating environment.
B3. Financial performance review The following table sets forth selected financial information
from our Statement of Profit and Loss for FY 21‑22 and
• Our Company’s Total income has increased by 10.51% to
FY 20‑21.
` 2,433.20 Crore in FY 21‑22 (` in Crore)
For the For the
• The Profit After Tax (PAT) stood at ` 1,393.13 Crore and year ended year ended
Particulars % Change
grew by 5.08% over FY 20‑21 March 31, March 31,
2022 2021
• The Operating Profit (Profit Before Tax less Other income) Revenue from Operations 2,115.36 1,852.53 14.19
increased by 9.85% to ` 1,537.45 Crore in FY 21‑22 Other Income 317.84 349.21 (8.98)
Total Income 2,433.20 2,201.74 10.51
• PAT as a percentage of Annual Average AUM decreased Finance Costs 8.64 8.95 (3.46)
from 0.35% in FY 20‑21 to 0.32% in FY 21‑22 Fees and Commission 5.41 5.69 (4.92)
Expenses
• The Company’s Average Networth increased by 17.04% to Employee Benefits Expenses 312.20 226.75 37.68
` 5,153.11 Crore in FY 21‑22
Depreciation, Amortisation and 53.85 55.41 (2.82)
Impairment
Financial performance with respect to our operations Other Expenses 197.81 155.99 26.81
The financial statements have been prepared and presented Total Expenses 577.91 452.79 27.63
on going concern basis and in accordance with the Indian Profit before Tax 1,855.29 1,748.95 6.08
Accounting Standards (Ind AS) as per the Companies (Indian Current Tax 418.96 369.39 13.42
Accounting Standards) Rules, 2015 notified under Section Deferred Tax Charge / 43.20 53.80 (19.70)
133 of the Companies Act, 2013, (the ‘Act’) and other relevant (Credit)
provisions of the Act, as amended from time to time. Tax Expense 462.16 423.19 9.21
Profit after Tax 1,393.13 1,325.76 5.08
Indian Accounting Standards (Ind AS) – IFRS Converged
Standards
Revenue from Operations
The Company had adopted Ind AS with effect from April
Revenue from operations comprises of investment
01, 2018.
management fees from the Mutual Fund and portfolio
management services (PMS) and other advisory services fee.
Significant accounting policies used for the preparation
of the financial statements are disclosed in note 3 to the
Investment management fees from the Mutual fund consists
financial statements.
of fees from various schemes which invest in different
categories of securities like Equity, Debt etc. In general, fees
per unit of AUM from schemes investing in equity securities

are substantially higher than schemes investing in debt no commission on fresh sale of Mutual Fund schemes was
securities. Within each of these categories of funds, there charged to the Company. However, certain amounts paid in
are variations in the fees per unit of AUM based on factors like the past are still being amortised. The residual unamortised
fund composition, fund size etc. Hence the quantum of fees amount of such commissions is miniscule. Our fees and
is dependent on the size and composition of the AUM and if commission expenses decreased from ` 5.69 Crore in
there are any changes therein, it leads to higher or lower fees FY 20‑21 to ` 5.41 Crore in FY 21‑22.
on an overall basis.
Employee Benefits Expenses
The increase in Revenue from Operations from ` 1,852.53
Crore in FY 20‑21 to ` 2,115.36 Crore in FY 21‑22, was largely Our employee benefits expenses increased due to the
due to increase in investment management fee by 14.34% following reasons:
from ` 1,839.51 Crore in FY 20‑21 to ` 2,103.24 Crore in
FY 21‑22. The said increase was a result of higher Annual • An increase in salaries and allowances of employees which
Average AUM in FY 21‑22 as compared to FY 20‑21. was led by increase in certain emoluments for employees
in FY 21‑22.
PMS and other advisory services fee has marginally declined
from ` 13.02 Crore in FY 20‑21 to ` 12.12 Crore in FY 21‑22. • The Nomination and Remuneration Committee (NRC) of
the Board of Directors of the Company at its meeting held
on February 22, 2021 had approved grant of 11,45,000 stock
Other Income options representing 11,45,000 equity shares of ` 5 each,
Our investment book rose in value due to retained surpluses. at a grant price of ` 2,934.25 per equity share (being the
market price as defined in the applicable SEBI Regulations),
As on April 01, 2020, the Company held certain to its eligible employees under Employees Stock Option
Non‑Convertible Debentures (NCDs) that were secured by Scheme ‑ 2020 (‘ESOS ‑ 2020’). NRC has also approved on
a pledge of listed equity shares. These NCDs were classified January 24, 2022, a further grant of 1,82,000 stock options
as financial assets at fair value through profit and loss. Hence, representing 1,82,000 equity shares of ` 5 each, at a grant
any realised gain on their sale/changes in fair value is reflected price of ` 2,369.40 per equity share (being the market price
under ‘Other Income’. During FY 20‑21, the Company had as defined in the applicable SEBI Regulations), to its eligible
invoked and sold a majority of the pledged shares. There employees under ESOS ‑ 2020. In terms of ESOS ‑ 2020,
was a net gain of ` 85.65 Crore in FY 20‑21 which consisted the options shall vest in three tranches. Each of these
of profit from sale of these shares as well as accretion in the tranches consisting of 1/3 of the options granted shall vest
fair value of the residual pledged shares. The balance pledged on the completion of the 1st, 2nd and 3rd year from the date
shares have been sold during FY 21‑22 resulting in a net gain of the grant respectively. The total charge towards the
amounting to ` 13.67 Crore. outstanding stock options has increased from ` 7.35 Crore
in FY 20‑21 to ` 63.32 Crore in the FY 21‑22 and the same is
Accordingly, our other income (adjusted for the above gains appearing as Share Based Payments to Employees.
on sale of pledged shares) would have been higher by 15.41%.
However, due to the above effect, it shows a decrease by Accounting for equity settled share based payment
8.98% from ` 349.21 Crore in FY 20‑21 to ` 317.84 Crore in transaction (employee stock options) at fair value increases
FY 21‑22. the non cash component of Employee Benefits Expenses
and is also reflected in Share Options Outstanding
Account under Other Equity. This balance of Share Options
Finance Costs
Outstanding Account is transferred to Securities Premium
Finance Costs are on account of accounting treatment as and when the stock options are exercised by the
prescribed under Ind AS 116 ‑ Leases, where the future employees and subsequent allotment of shares to them.
lease payments are discounted to its present value and are Hence, this charge is neutral to Equity of the Company.
un‑wound subsequently, resulting in finance cost.
• Accordingly, the employee benefit expenses increased by
Fees and Commission Expenses 37.68% from ` 226.75 Crore in FY 20‑21 to ` 312.20 Crore
in FY 21‑22. However, excluding the above mentioned
Fees and commission comprises primarily of commissions
non cash charge towards employee stock options, the
paid to distributors on sale of our Mutual Fund schemes, PMS
employee benefit expenses has increased by ` 29.48 Crore
and advisory mandates. In accordance with SEBI guidelines,
i.e. 13.44%.

Depreciation, Amortization and Impairment Profit Before Tax

Our Depreciation, Amortization and Impairment decreased Our Profit Before Tax increased by 6.08% to ` 1,855.29 Crore
from ` 55.41 Crore in FY 20‑21 to ` 53.85 Crore in FY 21‑22, in FY 21‑22 from ` 1,748.95 Crore in FY 20‑21.
primarily due to lower depreciation charge on improvement of
rented premises and computer softwares.
Tax Expenses
Our total tax expenses increased by 9.21% to ` 462.16 Crore
Other Expenses in FY 21‑22 from ` 423.19 Crore in FY 20‑21. Our current tax
Our other expenses increased by 26.81% from ` 155.99 Crore charge increased to ` 418.96 Crore in FY 21‑22 from ` 369.39
in FY 20‑21 to ` 197.81 Crore in FY 21‑22 primarily due to a Crore in FY 20‑21. Our deferred tax charge decreased to
increase in ‘Advertisement, Publicity and Business Promotion ` 43.20 Crore in FY 21‑22 from ` 53.80 Crore in FY 20‑21
expenses’, ‘New Fund Offer and Mutual Fund Expenses’, mainly on account of movement in ‘fair value gains / losses and
‘Software Expenses’, ‘Corporate Social Responsibility impairment on investments’. Our effective tax rate, including
expense’, ‘Travel and Conveyance’ and ‘Printing, Stationery deferred tax was at 24.91% and 24.20% for FY 21‑22 and
and Courier expenses’. This rise in expenditure was due FY 20‑21, respectively. Our Company had elected to exercise
a combined effect of pick up in business activities in the the option of a lower tax rate provided under Section 115BAA
current year as compared to a muted business environment of the Income‑tax Act, 1961.
on account of the effect of pandemic in the previous year
coupled with amounts spent on launching our new products
Profit After Tax
in current year.
As a result of the factors outlined above, our Profit After
• Our Advertisement, Publicity and Business Promotion Tax increased by 5.08% to ` 1,393.13 Crore in FY 21‑22 from
expenses increased from ` 14.99 Crore in FY 20‑21 to ` 1,325.76 Crore in FY 20‑21.
` 27.59 Crore in FY 21‑22.
Dividend
• Our New Fund offer and Mutual Fund Expenses increased
Your Directors have recommended a final dividend of ` 42
from ` 4.02 Crore in FY 20‑21 to ` 15.42 Crore in FY 21‑22.
per equity share of Face Value of ` 5 each for FY 21‑22 as
compared to ` 34 per equity share for FY 20‑21. Accordingly,
• Software Expenses increased from ` 15.95 Crore in
the Dividend payout ratio for FY 21‑22 would stand at 64.30%,
FY 20‑21 to ` 21.18 Crore in FY 21‑22 due to continuing
up from 54.61% for FY 20‑21.
technology improvements and digitization during the
current year.
Statement of Assets and Liabilities
• In accordance with the requirement of the Companies The following table sets forth selected financial information
Act 2013, our Corporate Social Responsibility expenses from our Balance Sheet as at March 31, 2022 and March
increased from ` 26.99 Crore in FY 20‑21 to ` 30.10 Crore 31, 2021
in FY 21‑22.
(` in Crore)
• Our Printing, Stationery and Courier expenses increased As at As at
Particulars
from ` 7.90 Crore in FY 20‑21 to ` 10.20 Crore in FY 21‑22. March 31, 2022 March 31, 2021
Assets
• Our Travel and Conveyance expenses increased from Financial Assets 5,684.01 4,871.71
` 2.07 Crore in FY 20‑21 to ` 4.83 Crore in FY 21‑22 Non Financial Assets 196.36 222.99
mainly due to easing of travel restrictions and increase in
Total Assets 5,880.37 5,094.70
in‑person interactions.
Liabilities and Equity
Inspite of this rise in other expenses, it is still comparable Financial Liabilities 218.88 230.01
to pre‑covid levels i.e. ` 195.43 Crore for FY 19‑20. We have Non Financial Liabilities 131.45 88.51
an optimistic view on our business and would continue to Total Liabilities 350.33 318.52
incur these business related expenses, which in our opinion,
would lead to future growth. We are also investing further Total Equity 5,530.04 4,776.18
into technology and digital infrastructure to be future
ready. However, these expenses would be incurred in a Total Liabilities and Equity 5,880.37 5,094.70
calibrated manner.

Financial Assets Key Financial Ratios

For the For the
Investments year ended year ended
Investments of the Company grew from ` 4,753.25 Crore in March 31, March 31,
2022 2021
FY 20‑21 to ` 5,570.23 Crore in FY 21‑22
Annual Average AUM 433,859.34 384,139.23 12.94
(` in Crore)
• The increase in Investments carried at fair value through
Profit and Loss from ` 4,263.12 Crore in FY 20‑21 to Profit After Tax as a % of 0.32 0.35 (6.96)
Annual Average AUM #
` 5,107.30 Crore in FY 21‑22 is primarily due to net purchase
of mutual funds. Debtors Turnover (times) 27.39 26.37 3.87
Current Ratio (times)* 8.13 6.44 26.24
• The investments carried at amortised cost have decreased Operating Profit Margin (%) 72.68 75.56 (3.81)
from ` 490.13 Crore in FY 20‑21 to ` 462.93 Crore in Net Profit Margin (%) 57.26 60.21 (4.90)
FY 21‑22 primarily due to maturity of certain tax free bonds.
Note: Inventory Turnover Ratio is not applicable to the Company.
Further, Interest Coverage Ratio and Debt Equity Ratio have not been
Non Financial Assets presented as the Company is debt free as at March 31, 2022 and as at
March 31, 2021. The finance costs appearing in the Statement of Profit
Non Financial Assets have decreased from ` 222.99 Crore and Loss is a result of accounting treatment under Ind AS 116 – Leases
in FY 20‑21 to ` 196.36 Crore in FY 21‑22. This decrease is and accordingly, there is no obligation on the Company to service any
primarily due to: interest cost.
#
Profit After Tax has not increased proportionately as compared to rise
• Decrease in net book value of Property Plant and Equipment in the Annual Average AUM due to higher non cash charge in employee
from ` 136.86 Crore in FY 20‑21 to ` 122.18 Crore in benefits expenses, higher other expenses and lower other income as
FY 21‑22 as well as decrease in net book value of Other explained earlier.
Intangible Assets from ` 10.32 Crore in FY 20‑21 to ` 6.88 * Reason for increase in Current Ratio:
Crore in FY 21‑22. (i) current asset balances and specifically, investments which are
maturing within 12 months from the reporting date including new
purchases, have changed and;
• Decrease in Other Non Financial Assets from ` 37.30
Crore in FY 20‑21 to ` 30.17 Crore in FY 21‑22. During (ii) current liabilities have reduced largely due to a reduction in lease
FY 20‑21 an amount of ` 12.46 Crore was paid to the liabilities payable within 12 months.
incoming Managing Director as one time payment and the
same is being amortised as per the terms of the contract. Return On Networth (Computed On Average Networth)
Out of the same, the balance unamortised amount as at (` in Crore)
March 31, 2022 has reduced to ` 7.81 Crore as compared to For the For the
` 11.96 Crore as at March 31, 2021. year ended year ended
March 31, March 31,
2022 2021
Financial Liabilities Networth at the Beginning of 4,776.18 4,029.26 18.54
the Year
Financial Liabilities have decreased from ` 230.01 Crore
Networth at the End of the Year 5,530.04 4,776.18 15.78
in FY 20‑21 to ` 218.88 Crore in FY 21‑22. This decrease is
primarily due to decrease in Lease Liability balances. Average Networth 5,153.11 4,402.72 17.04
Profit After Tax 1,393.13 1,325.76 5.08
Return on Average Networth 27.03 30.11 (10.23)
Non Financial Liabilities (%)
Non Financial Liabilities have increased to ` 131.45 Crore
in FY 21‑22 from ` 88.51 Crore in FY 20‑21. This increase is Return on Average Networth decreased from 30.11% in
primarily due to movement of net Deferred Tax balances. FY 20‑21 to 27.03% in FY 21‑22. This is due to a higher %
change in Average Networth as compared to % change in
Total Equity Profit After Tax. Average Networth has increased mainly due
to a rise in retained earnings.
Total Equity has increased mainly due to higher retained
earnings. Retained earnings represents the surplus profits
after payment of dividend.

B4. Outlook • Uphold industry‑leading corporate governance and risk

management practices
The mutual fund industry enjoys several tailwinds like
increasing importance of financial savings among Indian
• Enhance distribution footprint by expanding physical
households, under‑penetration of MFs, growing investor
network and leveraging state‑of‑the‑art digital assets
awareness and education, strong distribution platforms and
ease of transactions through digitisation.
• Use analytical capabilities to deepen relationships
with clients
India has more than 50 Crore Permanent Account Number
(PAN) holders. More than 3 Crore new Demat accounts have
• Remain prudent and, at the same time, not shy away from
been opened since March 2020. However, despite being
investing in future growth
around for decades, the Indian MF industry has reached only
3.4 Crore unique investors, which points to disproportionate
headroom for growth. C. Internal control systems and their adequacy
The Company has instituted adequate internal control
Growth drivers systems commensurate with the nature of its business and the
size of its operations. This provides a high degree of assurance
• Healthy savings rate of Indian households
regarding the effectiveness and efficiency of operations, the
adequacy of safeguards for assets, the reliability of financial
• Increased financial literary and more awareness about
controls and compliance with applicable laws and regulations.
capital markets and their benefits
The Audit Committee and Risk Management Committee are
• Efforts put in by regulators, AMFI, media, asset
responsible for overseeing the risk management framework,
management companies and distributors in educating
reviewing the key risks and mitigation strategies, and
investors about the benefits of investing in MFs
ensuring the effectiveness of risk management policies
and procedures. The Management is also responsible for
• Further expansion of the asset management industry into
ensuring that the risk management framework is effectively
B‑30 locations
implemented within all areas of their respective functions.
• Technology‑led improvement in efficiencies and customer
The Company has appointed Deloitte Touche Tohmatsu
experience
India LLP to oversee and carry out an internal audit of its
activities. It carries out internal control reviews and provides
• Emergence and growth of fintech platforms to bring in a
an independent report to the Audit Committee on the
large pool of new investors
adequacy and effectiveness of the risk management and
internal controls of the organisation. All significant audit
• Increased digitalisation allowing AMCs to expand services
observations and follow‑up actions thereon are periodically
and improve penetration
reported to the Audit Committee and closely monitored for
effective implementation.
• Growing popularity of SIPs, with large‑scale campaigns
improving outreach.
B S R & Co. LLP, the statutory auditors of the Company has
audited the financial statements included in this annual report
We are well placed to capitalise on the opportunities in the
and has issued as a part of Auditor’s Report, an attestation
domestic market, aided by our strong brand recall, disciplined
report on our internal financial controls with reference to
investment philosophy and process, customer‑centric
the financial statements (as defined in Section 143 of the
approach, well laid out distribution network and growing
Companies Act, 2013).
reach, and healthy financials.
Based on its evaluation, the Audit Committee has concluded
Strategic priorities that, as of March 31, 2022, our internal financial controls were
• Comprehensive product portfolio and solutions across adequate and operating effectively.
asset classes catering to the needs of a large, diverse and
growing customer base In recent past, remote working environment required the
Company to adjust and adapt certain control mechanisms
• Set industry benchmarks around performance which was done in a manner so as to ensure that there has
been no material change in the overall control environment of
the operations of the Company.

D. Information Technology (IT) Over the course of the year, the initial BCP has morphed into
a fully functional system, with the IT infrastructure spruce up
We have been making sustained investments to deploy
accordingly to cater to the increasing demands of a full‑fledged
best‑in‑class IT systems and have a resilient IT infrastructure
remote working environment. This led continuous support to
and processes. Our IT backbone has been playing a crucial role
this mature operating environment, we continue to invest
in increasing our process efficiency, increasing productivity,
in additional IT assets and other requirements according to
boosting our agility and hence reducing turnaround time across
specific needs.
our operations, Customer service, sales, risk management
and other support functions, including research. In fact, IT
has emerged as a crucial facilitator in business development. E. Compliance
We constantly upgrade our IT systems and infrastructure, Our Compliance function monitors compliance with
installing powerful mechanisms to ensure complete privacy in regulatory requirements laid down by the Securities and
our dealings, so that there is no business interruption and no Exchange Board of India (SEBI) with respect to mutual fund,
breach of faith. portfolio management services and alternative investment
funds activities and other business activities permitted under
We have active engagements with reputed vendors to provide Regulation 24(b) of SEBI (Mutual Funds) Regulations. The
IT solution delivery, application management, infrastructure Compliance function is an interface between us and various
operations, end‑user support, data center and network regulators and agencies, such as SEBI, the RBI, the Association
management services. of Mutual Funds in India, depositories and stock exchanges.
The Chief Compliance Officer updates our Board and Audit
In recent times, businesses have undergone rapid digital Committee at their meetings on various compliance matters.
and technological transformation. The flipside is that it has
also made systems vulnerable to cyberattacks, making Various internal policies and procedures ensure compliance
Cyber Risk Management an essential part of business. We with the regulatory requirements in relation to above
have a strong Cyber Risk Management framework, wherein businesses. Our Compliance Manual also lists the regulatory
cyber risk and mitigation controls are monitored by the requirements, timelines and the functions responsible for
Information Technology and Security Committee as well compliance. Employee’s Securities Dealing Codes regulate
as the Risk Management Committee, which report to the personal investment transactions of employees, including
Board of Directors. Key areas covered under the Cyber Risk that of their dependents. There are set guidelines for personal
Management are strong adherence to Board‑approved dealings for AMC and Trustee Directors as well. Policies such
Information and Cyber Security Policies, SEBI guidelines as Conflict of Interest Policy, Outsourcing Policy, Code of
and compliance ISO 27001:2013. Our strong focus on cyber Conduct for Prevention of Circulation of Unauthenticated
risk management helps us protect the confidentiality and News, Anti Money Laundering (AML) and KYC policy, and a
integrity of data. Cyber security controls and practices are Social Media Policy also ensure compliance with regulations
embedded into our business processes and we are aligned that are relevant for our businesses.
with concepts such as ‘Security by Design’ and ‘Defense
in‑Depth’ that ensures that we keep malware at bay. Our Each function ensures compliance with applicable regulations
cyber security practices are reviewed and audited at regular pertaining to its areas of operation. Accordingly, we have
intervals by independent agencies, which have noted NIL established procedures, policies, codes and manuals, such
non‑compliance. Our systems are subject to intense scrutiny as the Investment and Risk Manual, Operations Manual,
and validations in the course of systems audit. We have Client Services Manual, Valuation Policy, Voting Policy, Polling
received ISO 27001:2013 certification, which is a milestone Policy, Stress Test Policy, Cyber Security Policy, Cyber Crisis
in terms of security controls, across all departments in Management & Resiliency Policy, Stewardship Code and Code
the organisation. of Conduct for Fund Managers and Dealers. These are reviewed
and updated periodically. An established certification process
A strong Disaster Recovery and Business Continuity plan is followed by each function to periodically confirm compliance
helps us deal with exigencies through strategies such as with the regulatory requirements.
utilising branches as alternate sites, and IT disaster recovery
site, which are tested and kept ready on a regular basis. The Our compliance team keeps itself updated on new regulatory
efficacy of our BCP was fully tested during the pandemic. requirements and communicates the requirements to
Its efficiency enabled us to carry on with critical functions the relevant functions together with meaningful inputs
seamlessly from alternate sites, while the Virtual Private for implementation. The Compliance team also reviews
Network connectivity ensured that employees were able to the implementation status by coordinating with the
function remotely, adhering to all regulatory timelines. respective functions.

We have also appointed independent internal auditors to Our operations are conducted based on well‑formed systems
review the activities of each department and function, and processes that form the backbone of our operations.
including the compliance function. They review some of We maintain a keen focus on internal controls, minimising
the compliance reports before submission to the Board and operational risks, enhancing scalability and bringing efficiency
the regulators concerned. Periodical SEBI inspections and to meet various timelines. These systems are regularly
statutory audits are also conducted to review and assess the upgraded and all processes are re‑engineered periodically
compliance status. to ensure a high standard of regulatory compliance and
governance. We have a comprehensive BCP and Disaster
The Compliance team, apart from keeping a tab on compliance Recovery Plan (DRP) for our operations, which are reviewed
status, drafts and issues product offer documents, issues in consultation with the Board of Directors. Both these were
notices/addenda related to product documents, reviews tested during the pandemic and our transition to work from
marketing materials before dissemination, and ensures home (WFH) and back to office were seamless. We regularly
timely filing of various reports with the Board and regulators review the adherence of our service providers to acceptable
and agencies concerned. The Compliance team also oversees standards of governance & compliance, as well as their IT/
redressal of customer grievances. As part of its periodic BCP/DRP preparedness.
training initiatives, the Compliance team engages with the
employee(s) to educate, sensitise and create awareness
about their obligations under the Company’s codes/policies.
G. Risk management
Our risk management practices have been designed taking
into consideration the varying needs of our organization,
F. Operations operating structure, business operations and regulatory
Our operations are bifurcated into Mutual Fund Operations requirements. Our risk management philosophy clearly
(MFO) and Portfolio Management Services Operations defines the lines of defense within the organization. The Board
(PMSO). approved risk management policy details out our approach
to risk management and the roles and responsibilities of
The MFO team is responsible for servicing customers of the all stakeholders.
Mutual Fund and Segregated accounts u/r 24(b) of the SEBI
(MF) Regulations. The responsibilities, inter alia, include The Audit Committee and Risk Management Committee are
investment administration, cash management, treasury and responsible for overseeing the risk management framework,
settlement, fund accounting, asset valuation and unit pricing, reviewing the key risks and mitigation strategies, and
coordination with the RTA/ custodians/banks/other service ensuring the effectiveness of risk management policies
providers, and management information system. and procedures. The Management is also responsible for
ensuring that the risk management framework is effectively
The PMSO team is responsible for managing all clients under implemented within all areas of respective functions.
the SEBI (PMS) regulations. Its functions include post‑trade
investment support, cash management, treasury and Risk assessment and mitigation strategies are an integral
settlement functions, recording of transactions in the books part of the organization’s business reviews. The key risk
of accounts of the respective clients, valuation of securities management activities include Investment Risk, Operational
in clients’ portfolios, providing various reports to the & Regulatory Risk and Business Continuity and Disaster
management, and liaising with bankers and custodians. Recovery Management. Close monitoring and control
processes, including the establishment of appropriate key
The functions of the PMSO and MFO are kept completely risk indicators, are put in place to ensure that the risk profiles
separate and they have discrete teams and systems. are managed within the policy limits.
All operational activities are subject to independent audits. Given the rapid technological and digital advancement in
Internal auditors perform transactional and risk‑based audit, the securities market, cyber risks are inevitable. Hence, a
apart from undertaking process reviews on a regular basis. strong cyber risk management is essential. Our Company
Independent auditors carry out the statutory audit as required has a strong Cyber Risk Management framework wherein
under the applicable regulations for our schemes, portfolio cyber risk and its mitigation are monitored by the Information
management and segregated accounts. All applications used Technology Security Committee and Risk Management
in operations are regularly subjected to system reviews/ Committee of the Company. Key areas covered under the
audits. The Audit Committee reviews all the Auditors’ Reports cyber risk management include strong adherence to the
with respect to the entire operations. Board approved Information and Cyber Security Policies,

compliance with SEBI guidelines and ISO 27001 standards to H. Insurance

ensure that we are in line with industry best practices. Our
Our insurance policies cover the entire gamut of our
Company maintains a robust cyber security architecture
operations and protects the company from unexpected
and has in place a cyber resilience framework to protect the
exigencies in the future. We have specialized policy coverage
integrity of data and guard against breaches of privacy.
as the investment manager to HDFC Mutual Fund, which
in addition to the company also includes our employees,
We have a formal program for risk and self‑assessment,
directors and the trustee company of HDFC Mutual Fund. Our
whereby risk owners are involved in the ongoing assessment
insurance policy covers any liability arising out of operations
and improvement of risk management and controls.
of Registrar and Transfer Agent and Custodians associated
Additionally, internal audit carries out internal control reviews
with our Mutual Fund business.
and provides an independent report to the Audit Committee
on the adequacy and effectiveness of risk management and
internal controls of the organization. Our statutory auditor I. Intellectual property
carries out a review of our internal controls over financial We use, among others, the name, brand and trademark ‘HDFC’,
reporting to the extent of the scope laid out in their audit ‘HDFC Mutual Fund’, ‘HDFC Asset Management Company’
plans. All significant audit observations and follow‑up actions and associated logos in the ordinary course of our business
thereon are periodically reported to the Audit Committee and and in our corporate name. The trademark ‘HDFC’ is owned
closely monitored for effective implementation. by and is registered in favour of HDFC. HDFC has granted us
the non‑exclusive licence to use the trademark, ‘HDFC’, which
The systems that are in place are intended to provide is not currently subject to any terms and conditions.
reasonable but not absolute assurance against material
misstatements or loss, as well as to ensure the safeguarding
of assets, the maintenance of proper accounting records, J. Digital Platforms
the reliability of financial information, compliance with We provide end‑to‑end digital onboarding, transaction and
applicable legislation, regulations and best practices, and the servicing solution for retail individual investors and for our
identification and management of business risk. mutual fund distributors. We have a comprehensive range of
channels for both our investors and partners – portal, apps,
In the light of significant developments in the mutual fund quick links, chatbot, WhatsApp and Transact on Call. For our
industry and in the financial markets as a whole, SEBI released partners we also have the ‘Admin Portal’ apart from the listed
a circular “Risk Management Framework for Mutual Funds channels which cover almost the full range of transactions,
(RMF Circular)” on September 27, 2021 replacing previous reports and key non‑financial transactions. Our investors and
guidelines issued in 2002. partners can reach us via agent helpdesk, call back services,
co‑browsing service, live chat and other interventions as a
With the overall objective of management of key risks part of transaction journey management.
involved in mutual fund operations, the AMC adopted Risk
Management Framework (RMF) as detailed in the RMF Circular We launched a complete Digital Office solution for our partners.
effective April,1 2022. The components of RMF comprise This was a major upgrade from our earlier digital marketing
viz. (a) Governance and Organization; (b) Identification of solution with built‑in analytics and lead management backed
Risks, (c) Measurement and Management of Risks and (d) with content upgrade and co‑branding options. We developed
Reporting of Risks and related Information. The RMF defines cross/up sell analytical models for our partners on demand.
roles and responsibilities of all stakeholders including Board On MFOnline Partner platform, we added multiple excel bulk
of AMC, Board of Trustees, Chief Executive Officer (CEO), Risk upload facilities to make digital transactions easier for the
Management Committee (Board and AMC), Chief Risk Officer MFD. RM login was introduced for MFDs who work with larger
(CRO), Functional Heads (CXOs) and others. teams. API gateway was put in place for integration with MFDs.
We have also added co‑browsing facility and reactivated live
The RMF provides guidance with respect to management for chat so that we could support it real time.
all risks relevant for the AMC and the schemes of HDFC Mutual
Fund. To ensure an effective and integrated RMF, the AMC has We built an inhouse Customer Data Platform to improve
defined three lines of defense model viz. First line of Defense our investor engagement. This is now being upgraded to a
comprises the CXOs, Second line of Defense comprises leading industry platform. Our analytics‑based campaigns
oversight functions viz. Risk Management and Compliance have helped us improve our connect rate and multiply the
and the Third line of Defense is the Internal Auditor. conversion rate. We are working continuously on improving

our investor experience. In connection, we have refreshed diversity. Our Human Resources function is manned by
both our portals and app during the year. We have also added professionals who implement and drive changes that enhance
new features such as biometric authentication, nudges, more our reputation as an employer of choice.
channels and tracking for MFOnline journey management,
ability to invest in ETF via our website etc. Our policy of reward and recognition, proactive promotion
of a collaborative and humane work culture, have ensured
We have achieved significant milestones with regard to our our ability to attract and retain top talent. We have a robust
website on matters of speed, SEO, bounce rates, organic succession framework and continue to undertake programs
search, session duration etc. We also added voice search on to ensure uninterrupted availability of talent from premier
our corporate website including activating basic information institutes all across India. We continue to improve on gender
on Alexa. diversity through our programs to encourage greater
participation of women in our workforce while driving efforts
On the technology front, we strengthened internal capabilities to enhance employee experience, physical and mental
to develop and manage our solutions. Cost efficiency well‑being.
was maintained by continuous technology interventions,
especially on infrastructure, which resulted in costs being at Our approach and efforts are reviewed regularly at the apex
almost the same even though new solutions were added. level to ensure that we remain an employer of choice.
Enablement of all stakeholders continues to be one of

core agendas with regular training programs for internal
L. Marketing initiatives
teams and partners. We also added comprehensive digital #BarniSeAzadi
learning modules.
Specially curated campaign directed at women, launched on
the occasion of India’s 75th Independence Day. Through the
We will continue to work on powering our partners, helping
campaign we wanted to emphasise on the need to shift idle
them grow in these fast‑evolving business environments,
money to more growth-oriented instruments like mutual
proactively engage with our investors and continue to
funds, and to encourage a change of mindset to enable women
strengthen our digital delivery capabilities as a team.
to participate in financial decision-making. This campaign
has helped us to reach out to women, who remain the most
K. Human Resource neglected target group in the financial sector.
Our employees are our brand ambassadors who enable us
to reach out to and serve our customers and stakeholders. #LaxmiForLaxmi
A strong organisational culture and value system girds our
This was an exclusive end-to-end women-led financial
business and our interaction with our customers, partners
empowerment initiative, aimed at connecting women
and clients. Our employees help us accomplish our vision
investors with woman financial experts near them through
and mission of being the most respected asset management
a missed call. The experts would attend to queries of the
company in the world and the wealth creator for every Indian.
investors and handhold them in their journey towards financial
independence. Within a month, we were able to connect with
We strive to provide our people an open, inclusive and enabling
more than 3,000 women investors and encourage them to
work environment while creating for them opportunities to
seek financial independence.
upskill or reskill in order to adapt to a fast‑changing world.
We ensure that our people gain the ability and competence
necessary to remain future‑ready. To retain our record of #WinOverCovid
providing high‑quality advisory to our partners and clients, Through this campaign, we highlighted the human virtues
we ensure that our employees undergo the completion that helped the fight against the deadly virus, some of
of high‑quality and relevant certifications. We are fully which also subtly connected with qualities that make for a
compliant with all statutory provisions and applicable laws committed investor.
and regulations related to employment.
Beginning last year, we have been welcoming our employees #NurtureNature

back at our corporate offices and branches across India. On the occasion of World Environment Day on June 5, 2021,
We continue to invest in employee welfare, learning and we initiated #NurtureNature, a socially responsible campaign.
development, driving inclusion and enhancing workplace We promised to plant a tree on behalf of each investor who

registered a Systematic Investment Plan (SIP) through online We are aware that today customers are increasingly conscious
mode between May 31-June 11, 2021 in association with of choices and are much better informed than before. It is thus
Grow-Trees.com. imperative that we ensure that our frontline service team
remains sharp, agile, smart and responsive to the needs of
customers. To this end, we relentlessly educate and train our
#AssetAllocation campaign
staff. Our service teams at our branches across the country
The film was intended to create awareness on ‘How to invest are supported by an experienced staff at the corporate office.
tension free/befikar’ through various hybrid mutual funds. Regional Service Managers, who supervise service delivery
in the regional offices, visit branches regularly to ensure the
ELSS campaigns staff are aligned to our business purpose. While engaging
with the staff to understand their perspective, the Regional
The #EkTeerSeDoNishane and #SavingIsTheNewCool
Manager also manages mutual fund distributor requirements
campaigns focused on the twin benefits of ELSS investments
and augments support at the branches. The Corporate Client
– tax-savings and market gains.
Services team, on its part, takes into account the feedback
from the branches and trains the managers routinely for the
HDFC MF Yearbook last mile impact.
We published the 4th edition of the HDFC MF Yearbook.
It comprehensively covers our views on the global economy, We have a well‑structured framework to manage service
financial markets, the Indian economy and trends on delivery and ensure that we work in tandem to enhance
digitalisation and Buy Now Pay Later (BNPL), Consumer customer experience. Crucial to this framework is the
Tech, Climate Change, Electrical vehicles, Blockchain, cryto Registrar and Transfer Agent (RTA), Computer Age
currency, the road to Net Zero and so on. Management Services (CAMS), which forms the backbone of
our service delivery. We work closely with CAMS to ensure
the smooth execution of work and provide support to our
Republic Day Film distribution partners. We also regularly review our business
On the occasion of India’s 73rd Republic Day, we launched a film operations in detail so that we remain prepared to deal with
that reiterated our message #InvestInIndia. the dynamic business environment.
We service our customers through a network of 228 branches,

Launch of Passive Investment Solutions Factsheet
264 CAMS service centres, call centre, our website that
We launched the ‘Passive Investment Solutions Factsheet’ provide digital solutions, our distributor mobile app, stock
dedicated solely for our passive funds. exchanges, channel partners, MF Utility, MF Central, online
websites of mutual fund distributors and advisors and other
Mission to Mars – A mission to educate young investors avenues. Our efforts to enable, support and encourage digital
transactions have substantially increased the number of digital
This was an out-of-the-box interactive initiative aimed at
transactions, which now dominate business transactions.
equipping children with various investing concepts in a lucid
and interesting manner.
We measure our service delivery and quality through the
application of multiple parameters such as turnaround time,
Spreading hope on World Cancer Day repeat complaints, escalations etc. which are evaluated on a
We celebrated #10YearsOfCare in association with periodic basis to provide and improve seamless service to our
Indian Cancer Society and launched our landmark film on customers and business partners.
the occasion.
Customer delight can only be ensured if we work in cohesion
(For more details please refer to page 20) and this, we ensure through our collective endeavour to
place the customer at the heart of our business. Despite the
challenges created by the pandemic, it was this work ethics,
M. Customer Service backed by an efficient Business Continuity Plan, that helped
As a customer centric organisation, we continue to raise the us continue our operations without interruption. Taking into
bar through service excellence so that we remain a brand of account the pandemic protocol and government advisories,
choice in matters of financial planning. we have been promoting a combination of work from home
and office, ably supported by our teams across branches. The

challenges created by the pandemic have, in fact, given us the Introduction of various social media initiatives such a
opportunity to revisit and uplift our services and standards. weekly/monthly blogs/quizzes and write‑ups to reach a
Our digital team has undertaken multiple initiatives, enabling wider audience. We launched a series of audio and video
our website and mobile apps to provide best‑in‑class services presentations on social media covering various topics
to our stakeholders. The pandemic has accelerated our of investing
digital footprint and the ensuing year will see us invest more
in digitally enhancing customer convenience and experience. At the same time, we focused on providing opportunity to
our partners to strengthen their skills and domain knowledge
One of the key measures of client satisfaction is the complaints through various skill enhancement programs during the year.
received from our clients and our focus on continuously Some of these were:
improving our processes have led to a progressive decline in
Complaints, as shown below. • Crisil‑NSE Wealth Manager course certification – 157
partners enrolled for the course during the year
Complaints as a percentage of transactions %
FY 17‑18 0.014 • ertification – Conducted workshops and certification
C
programs with leading experts from the industry leading
FY 18‑19 0.012
to certifications
FY 19‑20 0.009
FY 20‑21 0.006 • oft‑skill development programs – To develop
S
FY 21‑22 0.006 communication and presentation skills and helping
harness emotional intelligence that help survivorship of
investors/advisors in volatile markets
N. Training
We have always prioritised the education and training for During FY 21‑22, we conducted 409 training/awareness
our investors and partners as we believe that learning is a sessions with 31 speakers covering a wide range of topics that
continuous process and we need to empower our stakeholders attracted over 101 thousand participants.
through knowledge‑sharing. We undertook various training
initiatives during the year to affirm this belief.
O. Social Initiatives
Many of these learning initiatives were undertaken under Read more on page 28 of this report.
HDFC LEAP, our proprietary learning and development
enterprise, to promote investor education and awareness
and helping our partners in skill enhancement. The second
P. Risks and Threats
half of FY 21‑22 saw the pandemic subsiding, leading to a shift The industry is seeing intense competition among existing
in the mode of training programs from online to in‑person AMCs as well as alternative investment platforms such as
trainings. During the period, we widened our reach to various fintechs and distribution companies. Given the explosion
investor segments and introduced a few unique programs. of options before the investor, the competition is likely to
These include: drive down total expense ratios, which, in turn, would drive
down investment management fees, which is the primary
• rom One Campus to Another – This was a unique
F source of revenue for AMCs.
investor education and financial literacy initiative that
intended to connect with college students and help One prime risk to business is disruptions in the technology
them apply their financial skills effectively. Along with infrastructure, on which we are heavily dependent. A
financial literacy, we held workshops on improving majority of our transactions today are processed digitally,
communication skills and any interruption is likely to adversely impact business.
We thus continue to channel substantial investments into
• ission to Mars – Spreading financial literacy among
M bolstering our technological infrastructure to enable it to
school students between age group of 9‑16 years. handle interruptions.
We successfully executed this module among school
children, many of them the children of our distributors Consumer confidence is essential to our business growth,
and clients and this is contingent not only on our performance but also
on the overall economy, the growth rate of the country,
• Fempower – An investor education initiative that focuses household savings rates and consumer attitude towards
on women investors and their specific financial needs financial savings. Any adverse market rate fluctuations
and goals and/ or adverse economic conditions could affect the
business in many ways, including by reducing the value of
our AUM, leading to a decline in revenue.

Customer confidence is also dependent on the efficacy particularly in an industry where integrity, trust and
of our investment strategies. If they perform poorly, customer confidence are paramount. Again, the regulatory
our existing customers may reduce or withdraw their environment in which we operate is also prone to changes,
investments and shift to low‑cost passive funds. We are which could regulations could adversely impact our
exposed to market risks such as liquidity risk, interest revenue and margins. Moreover, new laws or regulations
rate risk, credit risk, operational risk and legal risks, which applicable to our Company and customers may adversely
have a telling effect on our strategy and therefore, the affect our business.
effectiveness of our risk management, which is determined
by the quality and availability of data. Our schemes and In terms of the SEBI Mutual Fund Regulations, we are
other investment products carry their own risks. required to avoid conflicts of interest in managing the
affairs of our mutual fund schemes and uphold the
Stakeholder relationships such as that with our existing interests of our customers at all times. In the event of any
distributors is key to our business success. As many of conflict arising between the interests of our shareholders
our distribution relationships are non‑exclusive, our and those of our customers, we thus have to prioritise the
distributors may provide similar services to our competitors interests of our customers.
or prioritise our competitors’ investment product over that
of ours. While we ensure that we comply with all applicable laws, any
failure in detecting errors in our statutory records or errors
The skills and expertise of our employees also determine or omissions in our business operations could expose us to
our success, which is linked to our success in retaining potential losses.
talent. Our inability to do so and attract new talent is
likely to affect our performance, and lead to suboptimal In addition to the anticipated threats enumerated above,
business growth. situations may arise due to unforeseen black swan events
such as the geopolitical tensions, COVID‑19 pandemic or
Our reputation is linked to the strength of HDFC brand and fallout of climate change and other crises that may affect
reputation. While our brand is well‑recognised, we may be our business in unforeseen ways.
vulnerable to adverse market and customer perception,

Directors’ Report
To the Members The dividend recommended is in accordance with

Your Directors have pleasure in presenting the Twenty-third the parameters and criteria as set out in the Dividend
Annual Report together with the Audited Accounts of your Distribution Policy which has been approved by the Board of
Company for the financial year ended March 31, 2022. Directors of the Company. The Dividend Distribution Policy of
the Company is placed on the Company’s website at https://
Financial Results www.hdfcfund.com/about-us/governance/codes-policies
in terms of Regulation 43A of Securities and Exchange Board
The financial performance of your Company for the financial
of India (Listing Obligations and Disclosure Requirements)
year ended March 31, 2022 is summarized as below:
Regulations, 2015 (“Listing Regulations”).
(` in Crore)
FINANCIAL RESULTS
For the year ended
March 31, 2022
For the year ended
March 31, 2021
Management Discussion and Analysis Report,
Report of the Directors on Corporate Governance
Profit before Tax 1,855.29 1,748.95
and Business Responsibility and Sustainability
Less: Provision for Tax 462.16 423.19 Report
(Net of Deferred Tax)
Management Discussion and Analysis Report and the Report
Profit after Tax 1,393.13 1,325.76
of the Directors on Corporate Governance form part of
Add / (Less): Other 0.49 (0.69)
this report.
Comprehensive Income
(Net of Tax) Further, pursuant to Regulation 34(2)(f) of the Listing
Total Comprehensive 1,393.62 1,325.07 Regulations, instead of publishing a Business Responsibility
Income (A) Report, the Company has voluntarily published the
Balance of Retained 3,862.63 3,133.52 Business Responsibility and Sustainability Report for the
earnings carried forward financial year ended March 31, 2022, which also forms a part
from previous year of the report.
Less: Equity Dividend 724.43 595.96
Paid for earlier year Transfer to Reserves
Total (B) 3,138.20 2,537.56
There is no amount proposed to be transferred to the
Balance of Retained 4,531.82 3,862.63
reserves. For complete details on movement in Reserves and
Earnings Carried to
Balance Sheet (A+B)
Surplus during the financial year ended March 31, 2022, please
refer to the Statement of Changes in Equity included in the
For the year ended March 31, 2022, your Company posted a financial statements.
net profit of ` 1,393.13 Crore as against ` 1,325.76 Crore in the
previous year. Appropriations from the net profit have been Capital Structure
effected as per the summary given above. During the year, your Company issued and allotted 3,24,350
For a detailed analysis of the financial performance of your equity shares of ` 5/- each of the Company to eligible
Company for the year under review, refer to report on employees on exercise of stock options granted under
Management Discussion and Analysis. Employee Stock Option Schemes of the Company.
Your Company does not have any subsidiary or an associate Consequently, the issued, subscribed and paid-up equity
company or a joint venture company during the year share capital increased from ` 1,06,47,71,010/- represented
under review. by 21,29,54,202 equity shares of ` 5/- each as on April 1, 2021
to ` 1,06,63,92,760/- represented by 21,32,78,552 equity
Dividend shares of ` 5/- each as on March 31, 2022.
Your Directors recommend payment of dividend of ` 42/- per During the year under review, the Company has not issued any:
equity share (840%) of face value of ` 5/- each for the financial
a) shares with differential rights as to dividend, voting
year ended March 31, 2022 as against ` 34/- (680%) per equity
or otherwise.
share of face value of ` 5/- each for the previous year.
b) sweat equity shares.
The dividend pay-out ratio for the proposed dividend for the
year ended March 31, 2022 is 64.30%.

STATUTORY REPORTS DIRECTORS’ REPORT
Review of Operations Work from Home for employees, even in remote locations.
A safe environment following all the necessary protocols
Assets under Management (AUM)* of HDFC Mutual Fund
was created to enable essential employees to operate
(“HDFC MF”) at the close of FY 21-22 was ` 4.08 Lakh Crore as
from the office/ branches. Our strong IT systems and
against an AUM of ` 3.95 Lakh Crore at the close of FY 20-21,
digital infrastructure facilitated our operations to continue
an increase of 3%. The Annual Average AUM grew by 14% to
seamlessly and also aided in managing the additional
` 4.37 Lakh Crore. HDFC MF is one of India’s largest mutual
online transactions and activity. Effective October 2021,
funds in terms of total AUM with a market share of 10.8%
employees attended office pursuant to the issuance of
based on closing AUM. It is also one of the largest mutual funds
Covid notifications from State and Central Government.
in terms of actively managed equity-oriented funds, with a
market share of 11.3%. The actively managed equity-
Schemes Launched
oriented AUM at the close of FY 21-22 was ` 2.00 Lakh Crore
as against ` 1.65 Lakh Crore at the close of FY 20-21, an Following new schemes were launched during the financial
increase of 21%. The actively managed equity-oriented year –
annual average AUM constituted 43.2% of the total annual 1. HDFC Asset Allocator Fund of Funds
average AUM and increased by 28% to ` 1.89 Lakh Crore.
2. HDFC Banking & Financial Services Fund
Your Company managed 99 Lakh live accounts as on March 31,
2022, predominantly those of individual (retail) unitholders. 3. HDFC Nifty 50 Equal Weight Index Fund
The Individual monthly average AUM as a percent of total 4. HDFC Developed World Indexes Fund of Funds
monthly average AUM as of March 2022 was 62.4% as against
57.6% as of March 2021. Your Company has established a 5. HDFC Nifty Next 50 Index Fund
strong and wide network of Investor Service Centres (ISCs) 6. HDFC Multi-Cap Fund
rendering services to its unit holders located at various
locations across the country. Your Company has 228 ISCs 7. HDFC Nifty 100 Index Fund
as on March 31, 2022. ISCs of Computer Age Management 8. HDFC Nifty 100 Equal Weight Index Fund
Services Ltd. (CAMS), the Registrar and Transfer Agent of
HDFC MF, are Official Points of Acceptance for transactions 9. HDFC FMPs - Series 46
of Schemes of HDFC MF. These offices supplement the
investor servicing network of your Company. Your Company Fundamental Attributes Changed
services unitholders and over 75,000 empanelled distributors During the year, changes in fundamental attributes of the
in over 200 cities pan India. select schemes*, where enabling provisions for creation
of Segregated Portfolio in case of a Credit Event were
Your Company is one of the most preferred choices for
introduced, and were announced through addendum
individual investors, with a market share in assets from
dated September 16, 2021.
individual investors at 12.5%. Of the 3.37 Crore unique
investors in mutual funds in India (as identified by PAN), we *HDFC Banking and PSU Debt Fund, HDFC Corporate Bond Fund,
enjoy trust of 58 Lakh investors, a market penetration of HDFC Credit Risk Debt Fund, HDFC Dynamic Debt Fund, HDFC Floating
17%. Your Company’s offering of systematic transactions Rate Debt Fund, HDFC Income Fund, HDFC Low Duration Fund, HDFC
Medium Term Debt Fund, HDFC Short Term Debt Fund, HDFC Ultra Short
further enhances its appeal to individual investors looking
Term Fund, HDFC Liquid Fund, HDFC Money Market Fund.
to invest periodically in a disciplined and risk-mitigating
manner. Your Company processed ` 12,970 Crore through
The mergers of following schemes were also announced:
systematic transactions from April 2021 to March 2022.
These monthly flows provide a strong and stable “order 1) HDFC Long Term Advantage Fund, HDFC EOF - II - 1126D
book”, provide predictable flows, with 86% of live systematic May 2017 and HDFC EOF - II - 1100D June 2017 (1) into
investment plans (SIPs) subscribed for a tenure of more than HDFC Large and MidCap Fund and creation of segregated
5 years. Your Company also provides portfolio management portfolio in HDFC Large and MidCap Fund vide notice
and segregated account services, including discretionary, cum addendum dated December 9, 2021 and
non-discretionary and advisory services, to high net worth
2) HDFC FMP 1265D October 2018 (1), HDFC FMP 1246D
individuals (HNIs), family offices, domestic corporates, trusts,
November 2018 (1), HDFC FMP 1127D March 2019 (1),
provident funds and domestic and global institutions. As on
HDFC FMP 1120D March 2019 (1), HDFC FMP 1118D
March 31, 2022, the aggregate assets under these services
March 2019 (1) and HDFC FMP 1100D April 2019 (1) into
were at ` 9,215 Crore.
HDFC Corporate Bond Fund, vide notice cum addendum
All our operations for first 6 months of the financial dated March 15, 2022.
year continued to work remotely using the existing
* For details on Mutual Fund AUM, refer pages 6 and 7.
infrastructure in place. We have successfully continued with

Directors and Key Managerial Personnel Independent Directors

Non-Executive Directors Mr. Dhruv Kaji, Mr. Jairaj Purandare, Mr. Sanjay Bhandarkar,
During the year, Mr. James Aird (DIN: 01057384), Non- Mr. Parag Shah, Ms. Roshni Nadar Malhotra and Mr. Shashi Kant
Executive Director of the Company, director nominated by Sharma, Independent Directors, have submitted declarations
abrdn Investment Management Limited (formerly Standard stating that they meet the criteria of independence as per
Life Investments Limited) (AIML), one of the Promoters of the provisions of the Act and Listing Regulations.
the Company, has resigned as Director of the Company All the Independent Directors have also confirmed that
with effect from close of business hours of October 25, in terms of Rule 6(3) of the Companies (Appointment and
2021 pursuant to withdrawal of his nomination by AIML Qualification of Directors) Rules, 2014, they have registered
consequent to reduction of shareholding in your company themselves with the Independent Director’s database as
by AIML. prescribed under the Act. Further, in terms Rule 6(4) of the
Companies (Appointment and Qualification of Directors)
The Board places on record its appreciation for the valuable
Rules, 2014, out of six Independent Directors of the Company
contribution provided by Mr. James Aird at the Board/
as on March 31, 2022, two Independent Directors have passed
Committee meetings and to the Senior Management of the
the Online Proficiency Self-Assessment Test conducted
Company during his long association as a Non-Executive
by Indian Institute of Corporate Affairs (IICA) and four
Director of the Company.
Independent Directors were not required to appear for Online
During the year, the members at their 22nd Annual Proficiency Self-Assessment Test as required by IICA.
General Meeting (“AGM”) of the Company had appointed
In the opinion of the Board, the Independent Directors
Mr. Rushad Abadan (DIN: 08035538) as a Non-Executive Non- fulfill the conditions specified under the Act the Rules made
Independent Director on the Board of Directors of the thereunder and Listing Regulations and are independent of
Company, liable to retire by rotation. the management.
In accordance with the provisions of Section 152 of the All the directors of the Company have confirmed that they are
Companies Act, 2013 (“the Act”) and the Articles of not disqualified for being appointed as directors pursuant to
Association of the Company, Mr. Deepak S. Parekh Section 164 of the Act.
(DIN: 00009078), Director, is liable to retire by rotation at
the ensuing AGM and being eligible has offered himself Further, Mr. Shashi Kant Sharma (DIN: 03281847), Independent
for re-appointment. Director, has resigned as Director of the Company with effect
from April 11, 2022 as he was not in a position to devote
Mr. Deepak S. Parekh, Chairman and Non-Executive Director adequate time to the affairs of the Company due to his
of the Company having attained the prescribed age limit pre-occupation elsewhere.
of 75 years, Special Resolution is proposed in accordance
with Regulation 17(1A) of Listing Regulations. The members The Board places on record its appreciation for the
at their 20 th AGM of the Company had approved the contribution made by Mr. Sharma during his association with
continuation of directorship of Mr. Parekh beyond 75 years of the Company.
age by passing a Special Resolution.
Key Managerial Personnel
Necessary proposal for his re-appointment has been placed In accordance with the provisions of Sections 2(51) and 203
for your approval at the ensuing AGM. The brief profile has been of the Act read with the Companies (Appointment and
detailed in the Notice convening the AGM of your Company. Remuneration of Managerial Personnel) Rules, 2014, as
Your Directors recommend his re-appointment as a amended, Mr. Navneet Munot, Managing Director & CEO,
Non-Executive Director of your Company. Mr. Naozad Sirwalla, Chief Financial Officer and Ms. Sylvia
Furtado, Company Secretary are the Key Managerial Personnel
Executive Director (KMP) of the Company.
During the year, the members at their 22nd AGM of the During the year under review, Mr. Piyush Surana, Chief
Company had appointed Mr. Navneet Munot (DIN: 05247228) Financial Officer and KMP of the Company resigned with effect
as the Managing Director & Chief Executive Officer (CEO) of from close of business hours of January 31, 2022. Mr. Naozad
the Company for a period effective from February 16, 2021 up Sirwalla, was appointed as the Chief Financial Officer and KMP
to June 30, 2024. of the Company with effect from February 1, 2022.
Further, during the year, there was no receipt of any
Number of Meetings of the Board
remuneration or commission by the Managing Director &
CEO of the Company from the holding company. During the FY 21-22, 6 (six) meetings of the Board of Directors
of your Company were held and the details of Board and
Committee meetings held are provided in the Report of the
Directors on Corporate Governance, which forms part of
this report.

Annual Evaluation Disclosures as required under the ESOP Regulations

have been placed on the website of the Company at
Details on the formal annual evaluation conducted of the
www.hdfcfund.com.
performance of the Board, its committees and of individual
directors are provided in the Report of the Directors on Further, the certificate required under Regulation 13 of
Corporate Governance, which forms part of this report. the ESOP Regulations from the Secretarial Auditor of the
Company that all the employee stock option schemes have
Nomination & Remuneration Policy been implemented in accordance with the ESOP Regulations
In terms of the requirements under the Act and Listing will be available at the ensuing AGM for inspection.
Regulations, your Company has in place a Nomination & Auditors and Auditor’s Report
Remuneration Policy, inter-alia, detailing the director’s
appointment, remuneration, criteria for determining Statutory Auditors
qualifications, attributes, independence of a director and M/s. B S R & Co. LLP, Chartered Accountants (ICAI FRN:
other matters. The remuneration paid to the Directors, Key 101248W / W-100022) were appointed as the Statutory
Managerial Personnel and Senior Management is as per the Auditors of your Company to hold office from the conclusion
Nomination & Remuneration Policy of your Company. Further, of 18th AGM till the conclusion of the ensuing AGM.
during the year, Nomination & Remuneration Policy was M/s. B S R & Co. LLP, Chartered Accountants, will be
amended to include reference of the Skin in the Game Policy completing their first term of five consecutive years as the
prepared pursuant to SEBI circulars issued on alignment of statutory auditors of the company at the conclusion of this
interest of Key Employees of Asset Management Companies 23rd AGM of the Company.
with the Unitholders of the Mutual Fund Schemes. The
said Nomination & Remuneration Policy is placed on the Pursuant to Section 139(2) of the Act, the Company can
Company’s website at https://www.hdfcfund.com/about-us/ appoint an auditors firm for a second term of five
governance/codes-policies. consecutive years.
M/s. B S R & Co. LLP, have consented to the said
Issue of Employee Stock Options re-appointment, and confirmed that their re-appointment,
In line with the practice of incentivizing the employees if made, would be within the limits specified under the Act.
through issue of stock options, your Company, pursuant to They have further confirmed that they are not disqualified to
approval granted by the Shareholders of the Company at be re-appointed as statutory auditor in terms of the provisions
the AGM held on July 23, 2020, has formulated Employees of the Act read with rules made thereunder.
Stock Option Scheme – 2020 (ESOS – 2020) in terms of SEBI
The Board is of the opinion that continuation of M/s. B S R &
(Share Based Employee Benefits) Regulations, 2014. During Co. LLP, as Statutory Auditors will be in the best interests of
the year, the Nomination & Remuneration Committee (NRC) the Company and therefore, has recommended the members
of Board of Directors at its meeting held on January 24, 2022 to consider their re-appointment as Statutory Auditors of
has granted 1,82,000 stock options representing 1,82,000 your Company, for a term of five years, from the conclusion
equity shares of ` 5/- each to the eligible employees of your of the ensuing 23rd AGM, till the conclusion of 28th AGM of
Company as determined by the NRC, under ESOS – 2020 at the Company.
grant price of ` 2,369.40 per option. No employee was issued
stock option, during the year equal to or exceeding 1% of the Secretarial Auditor
issued capital of the Company at the time of grant. Pursuant to the provisions of Section 204 of the Act read
Your Company has also granted stock options to the with the Companies (Appointment and Remuneration
employees in the past under various employee of Managerial Personnel) Rules, 2014, your Company has
stock option schemes viz. Employee Stock Option appointed M/s. Bhandari & Associates, Company Secretaries
Scheme(s) 2015 - Series I & III and 2017 - Series I & to conduct the Secretarial Audit of your Company for the
II (“Schemes”) formulated from time to time for the FY 21-22. The Secretarial Audit Report is annexed herewith as
purpose of administering the issue of stock options to Annexure I to this report.
the eligible employees of your Company. There has been no There were no qualifications, reservations or adverse
material variation in the terms of the options granted under comments or disclaimer made by the aforesaid Auditors in
any of these Schemes and all the Schemes are in compliance their audit reports.
with the SEBI (Share Based Employee Benefits and Sweat
Equity) Regulations, 2021 (“ESOP Regulations”). However, the The said Auditors of the Company have not reported any fraud
as specified under Section 143(12) of the Act.
above Schemes formulated prior to IPO by your Company,
were aligned with the ESOP Regulations. Your Company Internal Auditors
will not make any fresh grant of stock options under these
M/s. Deloitte Touche Tohmatsu India LLP, were appointed
aforesaid Schemes.
as Internal Auditors of your Company for the financial year
2021-22.

Risk Management Policy Further, the internal financial controls related to financial
statements are found to be adequate and operating
The Risk Management Policy of your Company, reviewed by
effectively and that no material weakness has been noticed
the Audit Committee and approved by the Board, provides
during the year under review.
for the Enterprise Risk Management (ERM) framework to
identify, assess, monitor and mitigate various business
risks. This framework incorporates the checks, process and
Corporate Social Responsibility
procedures to identify potential risks in the operational areas In terms of Section 135 of the Act your Company has formed
of the business and minimise their impact on your Company. a Corporate Social Responsibility (CSR) Committee to
The framework is designed to identify risks, assess their approve activities to be undertaken, expenditure to be
likely impact, ensure the review of mitigation measures and incurred and to monitor the performance of the CSR
requires reporting on a regular basis. The Audit Committee of activities undertaken by the Company.
the Board of Directors at its meetings periodically reviews the The CSR Committee comprises Mr. Deepak S. Parekh
functioning of the ERM. (Chairman), Mr. Parag Shah and Mr. Navneet Munot. The
The Company has a strong Cyber Risk Management framework Company Secretary acts as the secretary to the Committee.
wherein cyber risk and mitigation controls are monitored by The Company undertakes its CSR activities through a
Information Technology and Security Committee and Risk variety of effective programs. The major thrust of the
Management Committee of the Company. Key areas covered CSR activities of the Company is in the areas of promoting
under the Cyber Risk Management are strong adherence to education and health care including preventive health
the Board approved Information and Cyber Security Policies, care. The Company also undertakes CSR activities in the
SEBI guidelines and ISO 27001:2013. The Company has areas of promoting sports, environment sustainability and
developed its digital infrastructure to enhance the Mutual eradicating malnutrition. These activities are in accordance
Fund investors’ interface with the Company. The Company with the Schedule VII to the Act.
maintains robust cyber security posture to protect the
confidentiality and integrity of data. The Board of Directors and the CSR Committee review
and monitor from time to time all the CSR activities being
During the year, SEBI vide its circular no. SEBI/HO/IMD/IMD- undertaken by the Company.
1 DOF2/P/CIR/2021/630 dated September 27, 2021, revised
Risk Management Framework (RMF) for mutual funds. As per The annual report on CSR activities in accordance with the
the said SEBI circular, all the mutual funds including HDFC Companies (Corporate Social Responsibility Policy) Rules,
Mutual Fund will have to adopt a Risk Management Framework 2014 (as amended from time to time), is set out at Annexure
which shall provide for set of principles or standards, inter-alia, II to this report.
comprising policies, procedures, risk management functions The amount remaining unspent under Section 135(5) of the
and roles & responsibilities of the management, the Board of Act pursuant to ongoing projects undertaken by your
AMC and the Board of Trustees. The new RMF shall be effective Company, has been transferred to Unspent Corporate Social
April 1, 2022. The Board of your Company has approved the Responsibility Account in accordance with Section 135(6) of
Risk Management framework, revised few policies in line the Act and such amount shall be spent by your Company in
with the said SEBI circular and is geared to implement risk pursuance of its obligation within the approved timelines.
measures outlined in the said circular. The terms of reference
of the Risk Management Committee has been enhanced in line The composition of the CSR Committee, CSR Policy as well as
with requirements of the said SEBI circular as its main function the CSR activities undertaken by the Company is available on
is to oversee the risks associated with the business of mutual the Company’s website at https://www.hdfcfund.com/about-
fund at the enterprise level, regulatory, compliance, operation us/governance/codes-policies.
and other functions of Company.
Particulars of Contracts or Arrangements with
Adequacy of Internal Controls Related Parties
Your Company has internal control systems which During the year, your Company has entered into transactions
commensurate with the size and complexity of its operations. with related parties as defined under Section 2(76) of the
Act read with Companies (Specification of Definitions Details)
The internal control systems comprise of standardised Rules, 2014, Listing Regulations and applicable Accounting
policies and procedures covering all functional areas aimed Standards, which were in the ordinary course of business and
at ensuring sound management of operations, reliable on arms’ length basis and in accordance with the policy on
financial reporting, safeguarding of assets and prevention and Related Party Transactions of the Company.
detection of frauds and errors. The Audit Committee of the
Board of Directors, at regular intervals and in co-ordination During the year the Company has revised its Related Party
with Internal and Statutory Auditors, reviews the adequacy of Transactions Policy to bring it in line with the amendments
Internal Controls within your Company. made by SEBI in Listing Regulations. The said Policy is effective

from April 1, 2022. The Policy ensures proper approval Act read with the Companies (Accounts) Rules, 2014 is stated
and reporting of the concerned transactions between the as below:
Company and related parties.
(a) Conservation of energy and technology absorption
The policy on Related Party Transactions is placed on the
Your Company is in financial services industry and does not
Company’s website at https://www.hdfcfund.com/about-us/
consume high levels of energy. However, regular efforts
governance/codes-policies.
are made to adopt appropriate energy conservation
During the year, there was no material transaction with any measures and technology absorption methods.
related parties as per the Related Party Transactions Policy
(b) Foreign Exchange, earnings and expenditure during
of the Company and/or any other related party transaction
the year –
entered into by the Company that requires disclosure in
Form AOC-2, hence, disclosure in Form AOC-2 is not applicable • Foreign exchange (earnings): ` 9.59 Crore (previous
to the Company. year: ` 10.34 Crore)
The disclosures pertaining to related party transactions as per • Foreign exchange (expenditure): ` 14.88 Crore
the applicable Accounting Standards form part of the notes (previous year: ` 15.35 Crore)
to the financial statements provided in this Annual Report.
Particulars of Employees
Particulars of Loans, Guarantees or Investments As on March 31, 2022, your Company has 1,187 employees and
Details of loans, guarantees and investments, if any, covered for the previous year, your Company had 1,254 employees.
under the provisions of Section 186 of the Act are provided in
In accordance with the provisions of Rule 5(2) of the Companies
the notes to financial statements.
(Appointment and Remuneration of Managerial Personnel)
Rules, 2014, the names and particulars of the top ten employees
Deposits in terms of remuneration drawn are set out in the annexure
During the year, your Company has not accepted any deposits to this report. In terms of the provisions of Section 136(1) of
within the meaning of Sections 73 and 74 of the Act read the Act the Directors’ Report is being sent to all shareholders
together with the Companies (Acceptance of Deposits) of the Company excluding the annexure. Any shareholder
Rules, 2014. interested in obtaining a copy of the annexure may write to
the Company.
Unclaimed Dividend on Shares
Further, disclosures on managerial remuneration as required
As at March 31, 2022, unclaimed dividend amounting to
under Section 197 of the Act read with Rule 5(1) of the
` 50,62,919/- which has not been claimed by shareholders of
Companies (Appointment and Remuneration of Managerial
the Company, is lying in the respective Unpaid Dividend
Personnel) Rules, 2014 are appended as Annexure III.
Accounts of the Company.
Your Company has disclosed the statement containing Other Disclosures
the names, last known addresses of those shareholders • There was no change in the nature of the business of
where the dividend is unpaid on the Company’s website at the Company.
www.hdfcfund.com.
• There was no revision in the financial statements of
Annual Return the Company.
Pursuant to Section 92(3) read with Section 134(3)(a) of the • Disclosure pertaining to maintenance of cost records as
Act the Annual Return as on the financial year ended March specified by the Central Government under sub-section (1)
31, 2022 is placed on the Company’s website at https://www. of Section 148 of the Act is not applicable to your Company.
hdfcfund.com/about-us/financial/annual-reports.
• There was no application made or any proceeding pending
under the Insolvency and Bankruptcy Code, 2016 during
Vigil Mechanism / Whistle Blower Policy the year.
Whistle Blower Policy is in place and details of the same
are provided in the Report of the Directors on Corporate • There was no one time settlement entered into with any
Governance, which forms part of this report. Bank or financial institutions in respect of any loan taken by
the Company.
Particulars regarding Conservation of Energy, • Details of the Audit Committee of the Board of Directors
Technology Absorption and Foreign Exchange including its composition are provided in the Report of the
Earnings and Outgo Directors on Corporate Governance, which form part of
The information pertaining to the conservation of energy and this report.
technology absorption in terms of Section 134(3)(m) of the

Directors’ Responsibility Statement compliance with the spirit and provisions of the Sexual
Harassment of Women at Workplace (Prevention, Prohibition
In accordance with the provisions of Section 134(5) of the Act
and Redressal) Act, 2013.
and based on the information provided by the management,
your Directors state that:
Significant/Material Orders Passed by the
(i) In the preparation of the annual accounts, the applicable Regulators
accounting standards had been followed along with There are no significant and material orders by any regulator,
proper explanation relating to material departures; court, tribunal impacting the going concern status of the
(ii) Accounting policies selected were applied consistently. Company and its operations in future.
Reasonable and prudent judgements and estimates
were made so as to give a true and fair view of the state of Material Changes and Commitments, if
affairs of the Company at the end of March 31, 2022 and any, Affecting the Financial Position of the
of the profit of the Company for year ended on that date; Company from the Financial Year End till the
date of this Report
(iii) Proper and sufficient care has been taken for maintenance
There have been no material changes and commitments
of adequate accounting records in accordance with the
affecting the financial position of the Company which have
provisions of the Act for safeguarding the assets of the
occurred between the end of the financial year 2021-22 and
Company and for preventing and detecting frauds and
the date of this Report.
other irregularities;
(iv) The annual accounts of the Company have been prepared Acknowledgements
on a going concern basis; The Directors take this opportunity to thank its investors,
(v) Internal financial controls have been laid down to be shareholders, trustee company, bankers, distributors,
followed by the Company and such internal financial key partners, Investor Service Centres and other service
controls are adequate and operating effectively; and providers for their continued support. The Directors would
like to convey their gratitude to Housing Development
(vi) Proper systems have been devised to ensure compliance Finance Corporation Limited and abrdn Investment
with the provisions of all applicable laws and that such Management Limited (Formerly Standard Life Investments
systems were adequate and operating effectively. Limited), promoters of your Company and look forward to
their continued support.
Secretarial Standards
The Directors acknowledge the valuable assistance, support
Your Company is in compliance with the provisions of the
and guidance given by the Securities and Exchange Board of
applicable Secretarial Standards issued by the Institute of
India, Association of Mutual Funds of India, Reserve Bank of
Company Secretaries of India in terms of the Act.
India, Ministry of Corporate Affairs, Registrar of Companies,
Stock Exchanges and Depositories.
Prevention of Sexual Harassment Policy and
its Reporting The Directors wish to place on record their appreciation to
Your Company has framed and implemented a Policy on employees at all levels for their dedication and commitment.
Sexual Harassment of Women at Workplace aiming at The Directors also acknowledge the faith reposed in HDFC
prevention of harassment of employees which lays down Mutual Fund by its investors and look forward to their
the guidelines for identification, reporting and prevention continued support.
of undesired behaviour. 6 (six) Internal Committees (IC) for
different zones were constituted in accordance with the Sexual On behalf of the Board of Directors
Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 with women employees being a Deepak S. Parekh
majority and an external member. The Policy, IC Members’ Mumbai Chairman
details and the penal consequences of violating the said Act/ April 27, 2022 (DIN: 00009078)
Policy are displayed at all offices/ ISCs and on the intranet
of the Company. Regular employee awareness sessions
are conducted to generate awareness about the policy, CIN: L65991MH1999PLC123027
reporting mechanism and prevention of sexual harassment Registered Office:
at the workplace. During the year, the IC received “HDFC House”, 2nd Floor, H. T. Parekh Marg
one complaint pertaining to sexual harassment and the 165 - 166, Backbay Reclamation, Churchgate
same was disposed of within the prescribed timeline in Mumbai – 400 020.
Tel.: 022 – 6631 6333, Fax: 022 – 66580203

STATUTORY REPORTS ANNEXURE
Annexure I
Secretarial Audit Report

For the Financial Year Ended 31st March, 2022
[Pursuant to Section 204(1) of the Companies Act, 2013 and
Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To v.
The following Regulations and Guidelines prescribed
The Members, under the Securities and Exchange Board of India Act,
HDFC Asset Management Company Limited 1992 (‘SEBI Act’): -
CIN: L65991MH1999PLC123027
a.
The Securities and Exchange Board of India
We have conducted the secretarial audit of the compliance (Substantial Acquisition of Shares and Takeovers)
of applicable statutory provisions and the adherence to good Regulations, 2011;
corporate practices by HDFC Asset Management Company
b.
Limited (hereinafter called “the Company”). Secretarial audit
(Prohibition of Insider Trading) Regulations, 2015;
was conducted in a manner that provided us a reasonable basis
for evaluating the corporate conducts/statutory compliances c. The Securities and Exchange Board of India (Issue of
and expressing our opinion thereon. Capital and Disclosure Requirements) Regulations,
2018#;
Based on our verification of the Company’s books, papers,
minute books, forms and returns filed and other records d. The Securities and Exchange Board of India (Share
maintained by the Company and also the information Based Employee Benefits and Sweat Equity)
provided by the Company, its officers, agents and authorized Regulations, 2021;
representatives during the conduct of secretarial audit,
e.
we hereby report that in our opinion, the Company has,
(Issue and Listing of Non-Convertible Securities)
during the audit period covering the financial year ended
Regulations, 2021#;
on 31st March, 2022 complied with the statutory provisions
listed hereunder and also that the Company has proper f.
Board-processes and compliance mechanism in place to (Registrars to an Issue and Share Transfer Agents)
the extent, in the manner and subject to the reporting Regulations, 1993 regarding the Companies Act
made hereinafter: and dealing with client;
We have examined the books, papers, minute books, forms g.
and returns filed and other records maintained by the (Delisting of Equity Shares) Regulations, 2021# and
Company for the financial year ended on 31st March, 2022
h.
according to the provisions of:
(Buy-Back of Securities) Regulations, 2018#.
i.
The Companies Act, 2013 (the Act) and the rules #
The Regulations or Guidelines, as the case may be were not
made thereunder; applicable for the period under review.
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the Rules made thereunder; The list of Acts, Laws and Regulations specifically applicable
to the Company are given below:
iii. The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder; vi.
The Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996 as amended.
iv. Foreign Exchange Management Act, 1999 and the rules
and regulations made thereunder to the extent of Foreign vii. The Securities and Exchange Board of India (Portfolio
Direct Investment. The Company does not have any Managers) Regulations, 2020.
Overseas Direct Investment and External Commercial
viii. The Securities and Exchange Board of India (Alternative
Borrowings during the financial year;
Investment Funds) Regulations, 2012. (Company
has not commenced the business of Alternative
investment Funds).

We have also examined compliance with the applicable clauses seeking and obtaining further information and clarifications
of the following: on the agenda items before the meeting and for meaningful
participation at the meeting.
i. Secretarial Standards issued by The Institute of Company
Secretaries of India. During the period under review, decisions were carried
through unanimously and no dissenting views were observed,
ii.
The Securities and Exchange Board of India (Listing
while reviewing the minutes.
Obligations and Disclosure Requirements) Regulations,
2015. [“Listing Regulations”] We further report that there are adequate systems and
processes in the Company commensurate with the size and
During the period under review, the Company has complied
operations of the Company to monitor and ensure compliance
with the provisions of the Act, Rules, Regulations, Guidelines,
with applicable laws, rules, regulations and guidelines.
Standards, etc. mentioned above to the extent applicable.
We further report that during the audit period the Company
We further report that - has no specific events/actions, having a major bearing on the
The Board of Directors of the Company is duly constituted Company’s affairs in pursuance of the above referred laws,
with proper balance of Executive Director, Non-Executive rules, regulations, guidelines, standards etc.
and Independent Directors. Further the changes in the For Bhandari & Associates
composition of the Board of Directors, that took place during Company Secretaries
the period under review, were carried out in compliance with Firm Registration No: P1981MH043700
the provision of the Act.
S. N. Bhandari
Adequate notice was given to all directors to schedule the Partner
Board Meetings, agenda and detailed notes on agenda FCS No: 761; C P No.: 366
were sent at least seven days in advance for meetings other Mumbai| April 27, 2022
than those held at shorter notice, and a system exists for UDIN: F000761D000213611
This report is to be read with our letter of even date which 3. We have not verified the correctness and
is annexed as Annexure ‘A’ and forms an integral part of appropriateness of financial records and Books of
this report. Accounts of the Company.
4. Where ever required, we have obtained the Management
‘Annexure A’ representation about the compliance of laws, rules and
To regulations and happening of events etc.
The Members,
HDFC Asset Management Company Limited 5.
The compliance of the provisions of Corporate and
CIN: L65991MH1999PLC123027 other applicable laws, rules, regulations, standards is
the responsibility of management. Our examination was
Our Secretarial Audit Report for the Financial Year ended on limited to the verification of procedures on test basis.
March 31, 2022 of even date is to be read along with this letter.
6. The Secretarial Audit report is neither an assurance as
1. Maintenance of secretarial record is the responsibility of to the future viability of the Company nor of the efficacy
the management of the Company. Our responsibility is or effectiveness with which the management has
to express an opinion on these secretarial records based conducted the affairs of the Company.
on our audit.
For Bhandari & Associates
2. We have followed the audit practices and processes Company Secretaries
as were appropriate to obtain reasonable assurance Firm Registration No: P1981MH043700
about the correctness of the contents of the Secretarial
records. The verification was done on test basis to ensure S. N. Bhandari
that correct facts are reflected in secretarial records. We Partner
believe that the processes and practices, we followed FCS No: 761; CP. No: 366
provide a reasonable basis for our opinion. Mumbai| April 27, 2022
UDIN: F000761D000213611

Annexure II
Annual Report on Corporate

Social Responsibility Activities
As prescribed under Section 135 of the Companies Act, 2013 and Companies
(Corporate Social Responsibility Policy) Rules, 2014
1. Brief outline on CSR policy of the Company The Company carries its Corporate Social Responsibility (CSR) activities through
various implementing agencies. The details of the AMC’s CSR Initiatives project
/ programs and activities are provided in this annexure and more particularly
specified in the CSR Policy of the Company which is uploaded on its website and
can be viewed on https://www.hdfcfund.com/about-us/corporate/csr
2. Composition of the CSR Committee As on March 31, 2022, the CSR Committee comprises of following members of
the Board –
Mr. Deepak S. Parekh (Chairman),
Mr. Parag Shah (Independent Director)
Mr. Navneet Munot (Managing Director and Chief Executive Officer)
Details related to number of CSR Committee meetings held during the year and
attendance is mentioned in the Corporate Governance Report forming part of
the Board’s Report.
3. Web-link where Composition of CSR committee, https://www.hdfcfund.com/about-us/corporate/csr
CSR Policy and CSR projects approved by the Board
of Directors of the Company are disclosed on the
website of the Company
4. Details of Impact assessment of CSR projects carried The Company in line with sub rule (3) of rule 8 of the Companies (Corporate
out in pursuance of sub-rule (3) of rule 8 of the Social Responsibility Policy) Rules, 2014, shall initiate steps to conduct impact
Companies (Corporate Social responsibility Policy) assessment of CSR Projects through an independent agency for applicable
Rules, 2014, if applicable projects. However, one year has not elapsed for any project towards which
CSR contribution was made by the Company.
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social responsibility
Policy) Rules, 2014 and amount required for set off for the financial year, if any:
Amount available for set-off from Amount required to be set- off for
Sl.
Financial Year preceding financial years the financial year, if any
No.
(in `) (in `)
1 FY 2018-19 NIL NIL
2 FY 2019-20 NIL NIL
3 FY 2020-21 NIL ` 1,06,02,280/-
TOTAL NIL ` 1,06,02,280/-
6. Average net profit of the company as per section 135(5) i.e. for last three financial years: ` 15,049,327,155/-
7 (a) Two percent of average net profit of the company as per section 135(5) i.e. for last three financial years: ` 300,986,543/-
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years Nil
(c) Amount required to be set off for the financial year, if any ` 106,02,280/-
(d) Total CSR obligation for the financial year (7a+7b- 7c) ` 29,03,84,263/-
8. (a) CSR amount spent or unspent for the financial year:
Amount Unspent (in `)

Total Amount Spent
for the Financial Year Total Amount transferred to Unspent CSR Amount transferred to any fund specified under Schedule VII as per
(in `) Account as per section 135(6) second proviso to section 135(5)
Amount Date of transfer Name of the Fund Amount Date of transfer
` 29,03,84,263/-* ` 5,24,43,660/- April 5, 2022 NA NA NA
* This amount includes: (i) the amount committed and transferred for ongoing projects (i.e. ` 5,24,43,660/- as set out in the table above); (ii)
amounts spent for other projects (` 23,68,63,330) and (iii) amount spent as administrative charges (` 10,77,273).

(b) Details of CSR amount spent against ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Amount Mode of
Item from Location of the transferred to Mode of Implementation -
Local project Amount Amount spent Through Implementing
Name the list of Unspent CSR Impleme-
Sl. area Project allocated for in the current Agency
of the activities in Account for the ntation -
No. (Yes/ duration the project financial Year
Project Schedule VII project as per Direct CSR
No) (in `) (in `)
to the Act State District Section 135(6) (Yes/No) Name Registration
(in `) number
1. Indian Promoting Yes Maharashtra Mumbai Upto ` 4,50,00,000/- ` 50,00,000/- ` 4,00,00,000/- No Indian CSR00000792
Cancer Preventive March 31, Cancer
Society Healthcare 2023 Society
2. Deepshika Promoting Yes Maharashtra Mumbai Upto ` 20,50,880/- ` 4,07,220/- ` 16,43,660/- No Deepshika CSR00002693
Preventive December
Healthcare 31, 2022
3. Rotary Promoting Yes Maharashtra Mumbai Upto ` 2,08,00,000/- ` 1,00,00,000/- ` 1,08,00,000/- No Rotary CSR00004479
Club of Environment June 30, Club of
Bombay- Sustainability 2022 Bombay
Urban Charities
Forest Trust No.3
Project
TOTAL ` 6,78,50,880/- ` 1,54,07,220/- ` 5,24,43,660/-
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8)
Item from Mode of Implementation -

Local Location of the project Mode of
the list of Through Implementing Agency
Sl. Name of area Amount spent for implementation -
activities in CSR
No. the Project (Yes/ the project (in `) Direct
Schedule VII State District Name Registration
No) (Yes/No)
to the Act number
1. CanCare Trust - Promoting Yes Maharashtra Mumbai ` 3,00,00,000/- No CanCare Trust CSR00001147
Head and Neck Preventive
Cancer Institute Healthcare
of India
2. Doctors For You Promoting No UP, Lucknow, Varanasi, ` 1,00,00,000/- No Doctors For You CSR00000608
Preventive Maharashtra, Ghaziabad, Agra, Pune,
Healthcare Karnataka, Tamil Bangalore, Coimbatore,
Nadu, Kerala Madurai, Malappuram
3. AROEHAN Promoting Yes Maharashtra Palghar ` 40,93,110/- No AROEHAN CSR00005435
Environment
Sustainability
4. Rotary Club of Promoting Yes Maharashtra Palghar ` 36,00,000/- No Rotary Club CSR00004479
Bombay - Water Environment Bombay Charities
Lift Irrigation Sustainability Trust No. 3
Project
5. Olympic Gold Promoting No Pan India Pan India ` 75,00,000/- No Foundation CSR00001100
Quest Olympic Sports for Promotion
of Sports and
Games of Sports
and Games
6. Ashoka Promoting No Haryana Haryana ` 10,00,00,000/- No International CSR00000712
University Education Foundation for
Research and
Education
7. Parivaar Seva Promoting No Madhya Pradesh Dewas, Sehore, Khandwa, ` 4,00,00,000/- No Parivaar CSR00000052
Kutirs Education and Dindhori, Vidisha Education Society
Eradication of
Malnutrition
8. Snehalaya Promoting Yes Maharashtra Ahmednagar ` 25,00,000/- No Snehalaya CSR00001248
Education
9. Muktangan Promoting Yes Maharashtra Mumbai ` 24,63,000/- No Muktangan CSR00000732
Education Education Trust
10. Sampark Promoting No Jharkhand Garhwa, Chatra, Godda, ` 2,13,00,000/- No Sampark CSR00000281
Foundation Education Lohdarga, Latehar, Foundation
Ramgarh, Kunti & Simdega
TOTAL ` 22,14,56,110/-

(d) Amount spent in Administrative Overheads – ` 10,77,273
(e) Amount spent on Impact Assessment, if applicable – NIL
(f) Total amount spent for the Financial Year (8b+8c+8d+8e) – ` 29,03,84,263/-
This amount includes: (i) the amount committed and transferred for ongoing projects (i.e. ` 5,24,43,660/- as set out in
the 8(a) above); (ii) amounts spent for other projects (` 23,68,63,330) and (iii) amount spent as administrative charges
(` 10,77,273).
(g) Excess amount for set off, if any
Sl. Amount
Particular
No. (in `)
(i) Two percent of average net profit of the company as per section 135(5) ` 30,09,86,543/-
(ii) Total amount spent for the Financial Year ` 29,03,84,263/-
(iii) Excess amount spent for the financial year [(ii)-(i)] NIL
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any NIL
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] NIL
9. (a) Details of Unspent CSR amount for the preceding three financial years:
Amount transferred to Amount spent Amount transferred to any fund specified under Amount remaining to
Sl. Preceding Unspent CSR Account in the reporting Schedule VII as per section 135(6), if any be spent in succeeding
No. Financial Year under section 135 (6) Financial Year Name of Amount Date of financial years
(in `) (in `) the Fund (in `) transfer (in `)
1. FY 2018-19 NA NA NA NA NA NA
2. FY 2019-20 NA NA NA NA NA NA
3. FY 2020-21 ` 17,29,60,000/- ` 11,79,60,000/- NA NA NA NA
TOTAL ` 17,29,60,000/- ` 11,79,60,000/- NA NA NA NA
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
(1) (2) (3) (4) (5) (6) (7) (8) (9)

Amount spent on Cumulative amount
Financial Year Total amount Status of the
the project in the spent at the end of
Sl. Project Name of the in which the Project allocated for the project -
reporting Financial reporting Financial
No. ID Project project was duration project Completed
Year Year
commenced (in `) /Ongoing
(in `) (in `)
1. FY Indian Cancer FY 2020-21 Up to June ` 15,00,00,000/- ` 10,50,00,000/- ` 10,50,00,000/- Ongoing
31.03. Cure Fund 30, 2022
2021_1 Project
2. FY Parivaar Seva FY 2020-21 Up to March ` 2,59,20,000/- ` 1,29,60,000/- ` 2,59,20,000/- Completed
31.03. Kutirs 31, 2022
2021_2
3. FY The Bombay FY 2020-21 Up to ` 1,00,00,000/- NIL NIL Ongoing
31.03. Scottish October 31,
2021_3 Orphanage 2022
Society
TOTAL ` 17,29,60,000/- ` 11,79,60,000/- ` 13,09,20,000/-
* Timelines for utilization of the amount of ` 1,00,00,000/- allocated to Bombay Scottish School (Ongoing Project of FY 2020-21) towards CSR
activities in FY 2020-21 is extended from March 31, 2022 to October 31, 2022 during FY 2020-21.

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent
in the financial year (asset-wise details)
(a) Date of creation or acquisition of the capital asset(s).
(b) Amount of CSR spent for creation or acquisition of capital asset.
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc.
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset).
Date of
Amount of CSR Details of the entity or public Provide details of the capital asset(s)
creation or
Sr. Name of spent for creation authority or beneficiary under created or acquired (including
Capital Asset acquisition
No. the Project or acquisition of whose name such capital asset is complete address and location of
of the capital
capital asset registered, their address etc. the capital asset)-
asset
1 CanCare Linear Accelerator 11-Mar-22 ` 3,00,00,000/- CanCare Trust Varian Medical Systems
Trust Equipment Address: Head & Neck Cancer International India Pvt.
institute of India Ltd.’s Linear Accelerator
A 508, Byculla Service Industries Equipment(LINAC).
Premises CHS LTD, Location: Head & Neck Cancer
Dadaji kondev road, Byculla East, institute of India
Mumbai 400027 CS NO 254, Barrister Nath Pai
Marg, Mazgaon, Mumbai 4000010
2 AROEHAN 1. Check Dam 5-Apr-22 ` 24,82,647/- AROEHAN Check Dam
A-1305, Landmark Tower, G D Location: Chonpipada-Hirve,
Ambekar Marg, Post - Beritse, Tal Mokhada,
Naigaon, Dadar (East), District - Palghar 401604
Mumbai - 400014
2. Lift irrigation ` 13,33,934/- Jai Adiwasi Farmer Lift Irrigation Unit such as Solar
unit at Suresh self help group system, Water distribution
Shinde Farm Address: Chonpipada-Hirve, system, Farm ponds for water
2.1 Solar system 15-Mar-22 Post- Beritse, Tal Mokhada, storage and Drip System
` 5,99,519/-
District - Palghar 401604 Location: Chonpipada-Hirve,
2.2 Water 17-Mar-22 ` 4,51,977/- Post- Beritse, Tal Mokhada,
distribution District - Palghar 401604
system
2.3 17 Farm ponds 17-Mar-22 ` 1,35,864/-
for water storage
2.4 Drip System 5-Apr-22 ` 1,46,574/-
3 Rotary Water Lift 21-Mar-22 ` 32,39,371/- Gram Panchayat Gale Water Lift Irrigation consisting
Club of Irrigation Solar Address: Tal Wada, of Solar Panels, Solar Pump and
Bombay System District Palghar 421303 Water Piping Equipment
Location: Tal Wada,
District Palghar 421303
4 Ashoka Student Start Date: ` 2,00,00,000/- International Foundation Student Residence Buildings (R1 &
University Residence 22-Sep-21 for Research and Education R2) situated on the North Campus
Buildings (R1 & R2) (Sponsor body of Ashoka of Ashoka University
University) Address: Plot No.1A, Rajiv Gandhi
Address: No.2 Green Avenue Education City, Rai, Sonipat,
Street, Pocket D3, Vasant Kunj, Haryana-131029.
New Delhi-110070.
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5):
Not applicable
Sd/- Sd/-
Deepak S. Parekh Navneet Munot
DIN: 00009078 DIN: 05247228
Chairman of Corporate Social Responsibility Committee Managing Director & Chief Executive Officer

Annexure III
Disclosures on
Managerial Remuneration
Details of remuneration as required under Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, is provided below:
Ratio of remuneration of each director to the median employees’ remuneration for FY 2021-22
Ratio of remuneration to the median
Name Designation
employees’ remuneration
Mr. Navneet Munot Managing Director & Chief Executive Officer 84:1
Mr. Deepak S. Parekh Non-Executive - Non Independent Director 4.3:1
Mr. Keki M. Mistry Non-Executive - Non Independent Director 4.1:1
Ms. Renu Sud Karnad Non-Executive - Non Independent Director 3.6:1
Mr. Rushad Abadan Non-Executive - Non Independent Director -
Mr. James Aird1 Non-Executive - Non Independent Director -
Mr. Dhruv Kaji Non-Executive - Independent Director 4.5:1
Mr. Jairaj Purandare Non-Executive - Independent Director 4.5:1
Mr. Sanjay Bhandarkar Non-Executive - Independent Director 4.7:1
Mr. Parag Shah Non-Executive - Independent Director 3.6:1
Ms. Roshni Nadar Malhotra Non-Executive - Independent Director 3:1
Mr. Shashi Kant Sharma2 Non-Executive - Independent Director 3.9:1
1
Resigned as the Director of the Company w.e.f. the close of business hours of October 25, 2021.
2
Resigned as the Director of the Company w.e.f. April 11, 2022.
Note:
The Company has considered fixed pay and performance bonus / commission for the computation of ratios. Fixed pay includes – salary, allowances, as
well as value of perquisites excluding retrial benefits.
Percentage increase in the remuneration of each director and key managerial personnel in FY 2021-22
Key Managerial Personnel
Name Designation Increase in Remuneration (%)
Mr. Navneet Munot Managing Director & Chief Executive Officer Not Comparable1
Mr. Piyush Surana Chief Financial Officer Not Comparable2
Mr. Naozad Sirwalla Chief Financial Officer Not Applicable3
Ms. Sylvia Furtado Company Secretary 9.72%
1
Appointed as the Managing Director & Chief Executive Officer of the Company w.e.f. February 16, 2021.
2
Resigned as Chief Financial Officer of the Company w.e.f. the close of business hours of January 31, 2022.
3
Appointed as Chief Financial Officer of the Company w.e.f. February 1, 2022.

Non-Executive Directors
There was no change in the sitting fees paid to the Non-Executive Directors for attending meetings of board/committees. The
Commission payable to each Non-Executive Director for FY 2021-22 is ` 20 lacs, which is same as last year and this Commission
will be paid after the financial statements are approved by the Shareholders at the Annual General Meeting scheduled to be held
on June 29, 2022.
Further, details on remuneration for all the directors are provided in Corporate Governance Report which is a part of this
Annual Report.
Percentage increase in the median remuneration of employees in FY 2021-22

The percentage increase in the median remuneration of employees in FY 2021-22 was 17.44%.
Number of permanent employees on the rolls of the Company

The Company had 1,187 permanent employees as of March 31, 2022.
Average percentile increase already made in salaries of employees other than managerial personnel in last financial
year and its comparison with the percentile increase in managerial remuneration and justification thereof and point
out if there are any exceptional circumstances for increase in the managerial remuneration
The average increase in the salaries of all employees for FY 2021-22 was 15.64%. The average increase in remuneration of
managerial personnel was 9.72% and non-managerial personnel was 15.65%.
The criteria for remuneration evaluation for all non-managerial personnel is based on an appraisal process which is conducted
on semi-annual basis and the remuneration of the managerial personnel is based as per the Nomination & Remuneration Policy.
The increase in remuneration is an outcome of a combination of the overall performance of the Company and individual’s
performance. The Company reiterates that there were no exceptional circumstances which warranted an increase in managerial
remuneration which was not justified by the overall performance of the Company.
Affirmation that the remuneration is as per the remuneration policy of the Company
Yes

STATUTORY REPORTS BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
Business Responsibility & Sustainability Report
Foreword
For HDFC AMC, sustainability goals form an inseparable part of the Company’s drive to achieve its financial goals. As such, they
are integrated into both the qualitative and quantitative aspects of Environment, Social and Governance (ESG) that guide and
inform the Company’s operations. The Company is also cognizant of the fact that climate change is not just an environmental
issue but also a business risk. The erosion of natural capital poses significant risks to both businesses and society.
HDFC AMC is into a service-oriented business, and primarily involved in the flow of information and financial transactions. The
Company’s carbon footprint is therefore limited to the use of consumables, such as paper, plastic, office equipment, water and
energy, among others. However, as a responsible corporate citizen, the Company endeavours to reduce its carbon footprint
and minimise its energy usage.
The Company is glad to publish its maiden Business Responsibility & Sustainability Report. BRSR is voluntary for FY 21-22 and
mandatory from FY 22-23 onwards for the top 1,000 Indian listed companies by market capitalisation.
Due credit must be given to the Securities and Exchange Board of India (SEBI) for taking the lead in putting together the BRSR
framework. The framework calls for measurable, quantitative metrics to facilitate better benchmarking.
Section A – General Disclosures

I. Details of the listed entity:
Sr. No. Particulars Details
1. Corporate Identity Number (CIN) of the Company L65991MH1999PLC123027
2. Name of the Listed Entity HDFC Asset Management Company Limited
3. Year of Incorporation 1999
4. Registered Office Address HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166,
Backbay Reclamation, Churchgate, Mumbai – 400 020.
5. Corporate Address HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166,
Backbay Reclamation, Churchgate, Mumbai – 400 020.
6. E-mail shareholders.relations@hdfcfund.com
7. Telephone +91 22 66316333
8. Website www.hdfcfund.com
9. Financial Year for which reporting is done FY 21-22
10. Name of the Stock Exchange(s) where shares are listed BSE Limited (BSE) & National Stock Exchange of India Limited (NSE)
11. Paid-up Capital ` 106.64 Crore
12. Name and contact details (telephone, email address) of Mr. Kartik Parekh
the person who may be contacted in case of any queries Chief Manager – Investor Relations
on the BRSR report Telephone No. – +91 22 66316333
E-mail – kartikp@hdfcfund.com
13. Reporting boundary As the Company does not have any subsidiary or an associate company
or a joint venture company, the disclosures made in this report pertain
only to HDFC Asset Management Company Limited.
II. Products/Services
14. Details of Business Activities
Sr. No. Description of Main Activity Description of Business Activity % of Turnover
1. Financial & Insurance Service Fund Management Services 99.4
2. Financial & Insurance Service Financial Advisory, Brokerage & Consultancy Services 0.6

15. Products/Services sold by the entity

Sr. No. Product/Service NIC Code % of Turnover contributed
The Company offers a comprehensive suite of savings and investment products across 65991 100%
asset classes catering to the needs of a large and diverse customer base.
The Company also provides portfolio management and segregated account services.
III. Operations
16. Number of locations where plants and/or operations/offices of the entity are situated
Location Number of Plants Number of Offices Total
National NA* 227 227
International NA* 1# 1
* The Company is into financial services and does not undertake any manufacturing activity.
#
Representative Office in Dubai.
17. Markets served by the entity

a. Number of locations
Locations Number
National (No. of States) Pan-India
International (No. of Countries) Various International Markets
b. What is the contribution of exports as a percentage of the total turnover of the entity?
Revenue from outside India contributed 0.45% to the total turnover of FY 21-22.
c. A brief on types of customers

The Company has played an integral role in shaping the investment management industry in India. The Company offers a
comprehensive suite of savings and investment products across asset classes, which provide income and wealth creation
opportunities to retail and institutional customers. We are a one-stop shop for individuals, families, corporates and
institutions when it comes to their investments. Nearly one out of every six mutual fund investors in India is invested with
the Company.
The Company closed FY 21-22 with 58 Lakh unique customers, 99 Lakh live accounts serviced through 228 Investor
Service Centres (ISCs), of which 150 are in B-30 cities. By Monthly Average Assets Under Management (MAAUM), individual
investors and institutional investors contribute about 62% & 38% respectively; around 17% of MAAUM is from B-30
cities whereas 83% is from T-30 cities. It would be worth a mention that the Company is amongst the preferred choice of
individual investors, with a market share of 12.5% of the individual MAAUM.
IV. Employees
18. Details as at March 31, 2022
a. Employees (including differently abled):
Male Female
Particulars Total (A)
No. (B) % (B/A) No. (C) % (C/A)
Permanent (D)* 1,151 814 71% 337 29%
Other than Permanent (E) 1,101 921 84% 180 16%
Total employees (D + E) 2,252 1,735 77% 517 23%
* active employees
b. Differently abled employees

Male Female
No. (B) % (B/A) No. (C) % (C/A)
Differently Abled Employees
Permanent (D) - - - - -
Other than Permanent (E) - - - - -
Total differently abled employees (D + E) - - - - -

19. Participation/Inclusion/Representation of women

No. & % of Females
No. (B) % (B/A)
Board of Directors 11 2 18.18%
Key Management Personnel 3 1 33.33%
Note: Details as at March 31, 2022
20. Turnover rate for permanent employees and workers

FY 21-22 FY 20-21 FY 19-20
Particulars
Male Female Total Male Female Total Male Female Total
Permanent Employees 16% 23% 18% 6% 8% 6% 9% 14% 11%
V. Holding, Subsidiary and Associate Companies (including joint ventures)

21. (a) Names of holding / subsidiary / associate companies / joint ventures (As at March 31, 2022)
Sr. Name of the holding / subsidiary / associate companies / Indicate whether holding/ Subsidiary/ % of shares held
No. joint ventures (A) Associate/ Joint Venture by listed entity
1 Housing Development Finance Corporation Limited (HDFC) Holding Company 52.6%
Does the entity indicated at column A above, participate in the Business Responsibility initiatives of the listed entity?
(Yes/No)
The Holding Company has its own Business Responsibility (BR) initiatives and generally do not participate in BR initiatives
of the Company.
VI. CSR Details

22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: Yes
(ii) Turnover: ` 2,115.36 Crore
(iii) Net worth: ` 5,530.04 Crore
VII. Transparency and Disclosures Compliances
23. Complaints/ Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
Business Conduct (NGRBC)
Grievance Redressal FY 21-22 FY 20-21
Stakeholder group Mechanism in Place Number of Number of
from whom complaint (Yes/No) (If Yes, then Number of complaints Number of complaints
complaints complaints
is received provide web-link for pending resolution at Remarks pending resolution at Remarks
filed during filed during
grievance redress policy) close of the year close of the year
the year the year
Communities - - - - - - -
Investors - - - - - - -
(other than shareholders)
Shareholders1 Yes 4 1 - 7 0 -
Employees and workers2 Yes 1 0 - 0 0 -
Customers3 Yes 2,598 8 - 3,164 22 -
Distributors Yes 2 - - - - -
(Value Chain Partners)4
1
https://www.hdfcfund.com/information/shareholders-information-and-helpdesk
2
Internal polices placed on the intranet and some of the policies guiding company’s conduct with its stakeholders on
https://www.hdfcfund.com/about-us/governance/codes-policies.
3
https://www.hdfcfund.com/contact-us/relationship
4
Distributors can write to us at partners@hdfcfund.com or mfonlinefeedback@hdfcfund.com
Investors and Shareholders can also write to grievance redressal officer: gro@hdfcfund.com
and shareholders.relations@hdfcfund.com respectively.

24. Overview of the entity’s material responsible business conduct issues

Various material responsible business conduct and sustainability issues pertaining to environmental and social matters
that present a risk or an opportunity to the Company’s business are as indicated below:
Indicate Financial implications of

Material
Sr. whether risk Rationale for identifying the the risk or opportunity
issue In case of risk, approach to adapt or mitigate
No. or opportunity risk / opportunity (Indicate positive or negative
identified
(R/O) implications)
1 Financial Opportunity Indians have predominantly The Company aims at inculcating the financial Positive:
Literacy saved money in traditional saving mindset by encouraging Indians to – Wealth creation for
fixed income instruments/ invest in mutual funds against traditional every Indian
lockers which may or may methods by launching investor awareness
not be able to deliver campaigns like ‘#BarniSeAzadi’, which – Connect with wider
positive inflation adjusted help women investors shift idle money from audience
returns or in unregulated Barnis (Canisters) to more growth-oriented – Increase in financial
instruments which may be instruments like mutual funds. literacy, especially for
high risk to capital. the marginalised ones
The Company also launched #LaxmiForLaxmi,
an exclusive end-to-end women-led financial
empowerment initiative that connected
women investors to a woman financial expert.
2 Data Risk The Company relies – The Company has a strong Cyber Risk Negative:
Security & heavily on its technology Management framework wherein cyber – Reputational risks
Customer infrastructure. As risk and its mitigation are monitored by
privacy majority of transactions the Information Technology & Security – Data privacy issues may
are processed digitally, it Committee and Risk Management lead to litigation risks/
increases cyber/information Committee of the Company. financial risks
security risk – Regulatory risk in terms
– The Company has increased efforts of fines, penalties, etc.
through sensitisation of employees,
customers and other stake holders on
cyber frauds, data privacy etc.
3 Digitisation Opportunity The demand for and The Company has consistently invested Positive:
acceptance of digital in technology and built a robust digital – Cost efficiencies
transactions is increasing environment in the organisation to ensure
due to low-cost internet minimum use of paper-based transactions – Better customer reach
data, high smartphone and communications. & service through digital
penetration and India's operations
biometric identity card. – Increased penetration
in B30 cities
4 Climate Risk/ Climate change has The Company’s investment team monitors Negative:
change & Opportunity originated new material ESG related factors in investee companies. Physical and Transition risks.
Governance risks and has increased – The Company has adopted a stewardship
reputational risks for code in line with the regulatory prescription. Positive:
businesses.
– Increase in shareholder – The Company continues to identify and act Drives better risk
on opportunities to reduce impact on the management and
activism on governance value creation.
practices. environment.

Section B – Management & Process Disclosures

The National Guidelines on Responsible Business Conduct (NGRBC) as prescribed by the Ministry of Corporate Affairs advocates
nine principles referred as P1-P9 as given below:
Principle 1: Principle 2: Principle 3:

Businesses should conduct and Businesses should provide goods Businesses should respect and
govern themselves with integrity, and services in a manner that is promote the well-being of all
and in a manner that is Ethical, sustainable and safe. employees, including those in
Transparent and Accountable. their value chains.

Businesses should respect the Businesses should respect and Businesses should respect and
interests of and be responsive to promote human rights. make efforts to protect and
all its stakeholders. restore the environment.

Businesses, when engaging in Businesses should promote Businesses should engage
influencing public and regulatory inclusive growth and with and provide value
policy, should do so in a manner that equitable development. to their consumers in a
is responsible and transparent. responsible manner.
Policy and Management Processes

P1 P2 P3 P4 P5 P6 P7 P8 P9
Disclosure Questions Respect Public

Ethics & Product Human Responsiveness Environment Inclusive Customer
for Human Policy
Transparency Responsibility resources to Stakeholders Protection Growth Engagement
Rights Advocacy
1. a. Whether your entity’s Yes No 1 Yes Yes Yes Yes No 2 Yes Yes
policy/policies cover each
principle and its core
elements of the NGRBCs.
(Yes/No)
b. Has the policy been
approved by the Board? Yes (as applicable)
(Yes/No)
c. Web Link of the Policies, https://www.hdfcfund.com/about-us/governance/codes-policies
if available Some policies being internal documents are available to the employees through the company’s intranet.
2. Whether the entity has
translated the policy into Yes (as applicable)
procedures. (Yes / No)
3. Do the enlisted policies The Company has not mandated any vendors, suppliers, business partners etc. to participate in the BR
extend to your value chain initiatives of the Company. However, they are encouraged to adopt BR initiatives and follow the model
partners? (Yes/No) expected from responsible business entities
4. Name of the national
and international codes/
certifications/labels/
standards (e.g. Forest
Stewardship Council,
Not applicable
Fairtrade, Rainforest Alliance,
Trustea standards (e.g. SA
8000, OHSAS, ISO, BIS)
adopted by your entity and
mapped to each principle

Principle-wise Polices
Principle Particulars Policies
P1 Ethics & Transparency • Whistle Blower Policy
• Policy on Conflict of Interest
• Social Media Policy
• Anti-Bribery & Anti-Corruption Guidelines*
• Code of Conduct for Directors & Senior Management
• AML/CFT & KYC Policy
• Policy for Determination of Materiality of Events
• Policy on Related Party Transactions
• Code of Practices & Procedures for Fair Disclosure of Unpublished Price Sensitive Information
• Outsourcing Policy
• Stewardship Code
• Information Security Policy
• Fraud Prevention Policy
Other internal policies that elucidate ethical behaviour, transparency and accountability
P2 Product Responsibility As the nature of business of the Company is providing comprehensive suite of savings and investment
products, at a corporate level, consumption of resources is limited to running of operations. However,
the Company keeps sustainability in mind while performing day-to-day operations.
P3 Well-being of Employees In addition to the Code of Conduct, other policies include:
• Policy on Sexual Harassment of Women at Workplace
• Whistle Blower Policy
• Board Diversity Policy
• Nomination & Remuneration Policy
P4 Responsive to stakeholders, • Corporate Social responsibility Policy
particularly the marginalised • Stewardship Code
P5 Respect for Human Rights • Policy on Sexual Harassment of Women at Workplace
• Whistle Blower Policy
• Equal Opportunity Policy
• Board Diversity Policy
P6 Environmental Protection • Business Continuity Policy
The Company is in financial services industry and hence does not consume high levels of energy.
However, regular efforts are made to adopt appropriate energy conservation measures. The
employees are also sensitised to prevent wasteful usage of natural resources.
P7 Public Policy Advocacy The Company may share its expertise to help in the formulation of public policy, but it does not
directly engage in advocacy activities.
The Company actively engages in investor education programmes for mutual funds in line with
AMFI guidelines. In addition, the senior leadership team takes active part in various committees of
AMFI and SEBI aimed at spreading financial literacy, increasing investor awareness, among others.
Also, the Company has advocated through AMFI, various governance, administration, economic and
educational reforms.
P8 Inclusive Growth The Company’s CSR policy covers activities focused on the marginalised and vulnerable sections
of the society.
P9 Customer Engagement • Customer Query & Grievance Redressal Policy
• Information Security Policy
• Business Continuity Policy
• Cyber Security Policy
• Social media Policy
• Cyber Crisis Management Policy
* Part of Employee manual

5. Specific commitments, goals and targets set by the Energy & Waste management
entity with defined timelines. There is a pressing need to conserve water, energy and
• The Company recognises its role in creating a positive manage waste in an eco-friendly manner. The Company
impact in the lives of communities by identifying the has taken several initiatives towards conserving the
core focus areas and achieving these commitments environment, some of which are described below:
and goals through investor awareness programmes
• 831 kg of e-waste processed in an environment
and corporate social responsibility activities.
friendly manner.
• The Company promotes inclusive environment at
• A tree was planted for every equity SIP, which was
the workplace and does not treat anybody differently
registered in digital mode for a specific tenure under
based on their gender, race/caste, religion/beliefs,
‘Nuture Nature’ campaign.
disability, marital status or any other category and
at the same time believes in hiring the right talent • Rejuvenation of pond, urban foresting using Miyawaki
based on merit. technique and a butterfly park over a 50,000 sq feet
area in the heart of Mumbai (under CSR Project).
• The Company is committed towards reducing its
carbon footprint. • Deployment of timers for signage boards to
save electricity.
• The Company believes in up-skilling the work force for
the holistic development of its employees and to align
Up-skilling
with the changing business environment.
• 1,100+ employees completed CFA investment
6. Performance of the entity against the specific foundation course which covers various aspects of
commitments, goals and targets along with reasons investment management. The Company believes
in case the same are not met. such large initiatives will enhance the overall
skill level of the industry, with immense benefits
Inclusive Growth
percolating to the large mutual fund distribution
• The Company launched #BarniSeAzadi campaign on network and even to mutual fund investors.
the 75th Independence Day. It has conducted 400+
investor awareness programs with the intent of • The Company also conducted 6 ethics workshops in
promoting financial independence among women. partnership with the CFA Institute, which covered
most of its employees. Ethics has always been the
• The Company launched #LAXMIforLAXMI, a women- corner stone of the organization and these workshops
led financial empowerment initiative under which further reinforced the organization’s commitment
~10,000 women expressed interest for taking their to creating an ethical work place. The workshops
first step towards financial liberation. included real life case studies and equipped employees
• The Company has contributed towards healthcare, to deal with ethical dilemmas.
education, environment sustainability and sports • Enrolled 157 partners for wealth manager
development through its CSR activities. course certification.
Workforce Diversity • Motivated employees to achieve 950 NISM

certifications which is over and above the
~30 % of the Company’s permanent work force
mandatory requirements.
are women.
Governance, leadership and oversight
Digital Environment
7. Statement by director responsible for the business
The Company has consistently invested in technology
responsibility & sustainability report
and built a robust digital environment in the organisation
to ensure minimum use of paper-based transactions HDFC AMC believes that sustainability goals are part
and communication. and parcel of its financial goals and the Company has,
accordingly, integrated ESG considerations into its
• 76% transactions are supported by integrated business decisions and operations. The Company is
online platform. focused on executing a strong ESG proposition by
• The Company’s digital transactions have grown at a working with all stakeholders, and this commitment to
CAGR of 31% since FY 16-17. sustained value creation is reflected in its mission “To be
the wealth creator for every Indian”.

The Company also recognises that climate change is not just an environmental issue, and that it has broader implications
for the business and its ability to create value for its stakeholders. Aware of its social and environmental responsibility,
the Company continues in its endeavour to reduce its carbon footprint. Towards this objective, it has been consistently
investing in technology and building a robust digital environment and undertaking various other measures that are covered
in the report.
The Company believes that the success of ESG should not be measured in terms of the amount ESG funds garner from
the market, but on how ESG parameters get mainstreamed by integrating ESG in the entire investment process.
The Company’s investment team monitors ESG-related factors in investee companies while also engaging with the
management of these companies on issues such as executive compensation, dividend distribution policies, capital
allocation, related party transactions, among others.
Sustainability is critical to ensuring the long-term success of businesses and creating shared value. HDFC AMC would like
to congratulate the regulators for integrating sustainability into the reporting parameters in a steadfast manner, and for
thinking far ahead of the times.
Particulars Details
8. Details of the highest authority responsible for implementation and Mr. Navneet Munot
oversight of the Business Responsibility policy(ies) Managing Director & Chief Executive Officer
DIN: 05247228
9. Does the entity have a specified Committee of the Board/ Director The Executive Director as stated above is in charge of
responsible for decision-making on sustainability related issues? the decision making on sustainability related issues
(Yes / No). If yes, provide details
10. Details of Review of NGRBCs by the Company

Subject for Review Review of Principles Undertaken and their Frequency
Performance against above policies and follow up action Relevant policies of the Company are reviewed periodically or on a need basis.
The necessary changes to policies and procedures are implemented accordingly.
Compliance with statutory requirements of relevance to the The Company is in compliance with the extant regulations as applicable.
principles, and, rectification of any non-compliances
11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency?
(Yes/No). If yes, provide name of the agency.
The processes and compliances are subject to audits and inspections as applicable. The policies are reviewed on a periodical
basis by the respective departments, and updated accordingly. The updated policies with changes recommended by the
management of the Company are placed before the Board for its approval, as applicable. An internal assessment of the
workings of the policies has been carried out as stated above.
12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
The entity does not consider the Principles material to its business (Yes/No) Note 1 Note 2
The entity is not at a stage where it is in a position to formulate and implement the
policies on specified principles (Yes/No)
The entity does not have the financial or/human and technical resources available
for the task (Yes/No)
It is planned to be done in the next financial year (Yes/No)
Any other reason (please specify)
Notes
1. As the nature of business of the Company is providing comprehensive suite of savings and investment products, at a
corporate level, consumption of resources is limited to running of operations.
2. The Company may share its expertise to help in the formulation of public policy but it does not directly engage in advocacy
activities and hence does not have a specific policy for this purpose. The Company actively engages in investor education
programmes for mutual funds in line with AMFI guidelines. Also, the Company has advocated through AMFI, various
governance, administration, economic and educational reforms.

Section C – Principle-wise Performance Disclosures

Principle 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent and Accountable.
UN SDGs
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the principles during the financial year:
%age of persons in respective
Total number of training and awareness Topics / principles covered under the
Segment category covered by the
programmes held training and its impact
awareness programmes
Board of The Company conducts orientation programmes after the appointment of new Directors on 100%
Directors its Board, wherein the management of the Company makes presentations to familiarise the
Directors with the mutual fund business/ industry practices, systems and policies adopted by
various departments of the Company, especially the governance practices and compliance
process adopted by the Company.
During the year, the Board of Directors of the Company spent approximately 9 hours on various
familiarization programs comprising matters relating with changes in the regulations, policies
impacting the business of the Company through its periodical updates inter-alia, overview of the
mutual fund industry, regulatory developments, overview and outlook of Indian economy, markets
update and trends, risk management mechanism.
Key Managerial The Company has a Code of Conduct for senior management personnel which covers topics 100%
Personnel like ethical conduct, bribery and corruption, conflict of interest, transparency, safety & health of
employees, etc.
Employees The Company conducted 6 ethics workshops for its employees in partnership with the CFA 100%
other than Institute. Employees also undergo various training programmes, some modules are mandatory
BOD and KMPs for the new recruits viz, prevention of sexual harassment, information security, prohibition of
insider trading etc.
2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the
entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year,
Monetary Name of the regulatory/
NGRBC Amount Brief of Has an appeal been
enforcement agencies/
Type Principle (In INR) the Case preferred? (Yes/No)
judicial institutions
Penalty/ Fine NA NA NIL NA NA
Settlement NA NA NIL NA NA
Compounding fee NA NA NIL NA NA
Name of the regulatory/

Has an appeal been
Type NGRBC Principle enforcement agencies/ Brief of the Case
preferred? (Yes/No)
judicial institutions
Imprisonment NA NA NA NA
Punishment NA NA NA NA
It may be noted that the Company receives administrative warnings/deficiency letters in the regular course of its business
pertaining to Mutual Funds, Portfolio Management Services pursuant to regulatory inspections conducted by SEBI from
time to time. Necessary corrective actions in this regard are taken by the Company.
3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or
non-monetary action has been appealed.
Case Details Name of the regulatory/ enforcement agencies/ judicial institutions
Not Applicable

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a
web link to the policy.
Yes, anti-corruption and anti-bribery guidelines are part of the employee manual and are available to internal stakeholders.
The Company is committed to conducting business by following the highest ethical standards. All forms of bribery and
corruption are prohibited. The Company conducts its business in adherence to all statutory and regulatory requirements.
5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement
agency for the charges of bribery/ corruption:
Case Details FY 21-22 FY 20-21
Directors NIL NIL
KMPs NIL NIL
Employees NIL NIL
6. Details of complaints with regard to conflict of interest:

FY 21-22 FY 20-21
Particulars
Number Remarks Number Remarks
Number of complaints received in relation to issues of Conflict NIL - NIL -
of Interest of the Directors
Number of complaints received in relation to issues of Conflict NIL - NIL -
of Interest of the KMPs
7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by
regulators/ law enforcement agencies/ judicial institutions on cases of corruption and conflicts of interest.
Not applicable
Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year
Topics/ principles covered %age of value chain partners covered (by value of business done
Particulars
under the training with such partners) under the awareness programmes
Total number of awareness programmes held The Company conducts regular product training for its distributors
2. Does the entity have processes in place to avoid/ manage conflict of interest involving members of the Board?
(Yes/No) If yes, provide details of the same.
The company has Conflict of Interest Policy (CoI) policy to avoid conflict of interest involving Board and KMP. Further,
pursuant to listing regulations, senior management confirms to the Board of Directors that there was no material, financial
and commercial transactions, where they have personal interest that may have a potential conflict with the interest of the
Company at large.
The Company has CoI Policy to enable compliance with the provisions of the acts and regulations applicable to its business.
The Company has Conflict Resolution Committee (CRC), which includes the Managing Director and Chief Executive Officer,
Chief Compliance Officer, Company Secretary and the respective Head of Departments based on the subject matter of
the Conflict of Interest for managing and dealing with CoI situations within the Company.
The Company has also formulated the policy on related party transactions for providing guidelines in relation to
identification of related parties.

Principle 2: Businesses should provide goods and services in a manner that is sustainable and safe
UN SDGs
1.
Percentage of R&D and capital expenditure (capex) an eco-friendly manner. To achieve these objectives, the
investments in specific technologies to improve the Company, encourages reuse/recycle wherever possible
environmental and social impacts of product and and monitors improvement. The Company engages with
processes to total R&D and capex investments made certified e-waste handlers for the disposal of e-waste.
by the entity, respectively. The Company has also replaced plastic garbage bags
Details of improvements in
with bio-degradable bags.
Particulars FY 21-22 FY 20-21
environmental and social impacts
R&D 4.
Whether Extended Producer Responsibility (EPR) is
Refer note below applicable to the entity’s activities (Yes / No). If yes,
Capex
whether the waste collection plan is in line with the
Note: The Company is primarily into financial services, Extended Producer Responsibility (EPR) plan submitted
hence the relevance of the above is largely restricted to to Pollution Control Boards? If not, provide steps taken
capital expenditure towards information technology. Capital to address the same.
expenditure incurred towards IT hardware and software Not applicable
(excluding Right of Use assets) was 78.85% of total capital
expenditure investments in FY 21-22 vs 76.19% in FY 20-21. Leadership Indicators
The Company intends to continue identifying and acting on 1.
Has the entity conducted Life Cycle Perspective
opportunities to reduce its impact on the environment. It / Assessments (LCA) for any of its products (for
has consistently invested in technology and built a robust manufacturing industry) or for its services (for
digital environment in the organisation. Over the last 5 years, service industry)? If yes, provide details in the following
electronic transactions have grown at a CAGR of 31%. format?
The primary business activity of the Company is asset
2. a. Does the entity have procedures in place for sustainable management. It is a service-oriented business primarily
sourcing? (Yes/No) involved in managing the investment of retail and
As the nature of business of the Company is providing institutional investors across asset classes and servicing
a comprehensive suite of savings and investment their requirements across the life cycle of their journey
products, consumption of resources is limited to running with the Company.
of operations.
The investment life cycle is a sequential process ranging
The Company, however, remains cognisant of reducing from sourcing clients to onboarding them, providing
its resource consumption by procuring energy efficient curated investment solutions and hassle-free customer
equipment. The major suppliers of hardware are green service to the clients during their journey with us. A brief
standard compliant and data centres are certified under description of the client life cycle is provided below:
Environmental Management System ISO 14001:2015.
Sourcing:
2. b.
If yes, what percentage of inputs were sourced Clients can invest in our schemes either directly or
sustainably? through the distribution partners. They can transact
Refer response to point 2.a. through the physical mode or through our electronic
portal. A client can submit his/her physical applications
3. Describe the processes in place to safely reclaim your at multiple touch points like our investor service
products for reusing, recycling and disposing at the end centres, CAMS branches or to the distribution partners.
of life, for (a) Plastics (including packaging) (b) E-waste The Company works with a diverse set of distribution
(c) Hazardous waste and (d) Other waste partners and currently has over 75,000 empaneled
Given the nature of the business, the Company has limited distributors which include mutual fund distributors,
scope on these parameters, however, the Company national distributors, banks, investment advisers and
realises that there is a pressing need to manage waste in fintech firms. While we continue to source business

across channels, the focus is on driving the adoption Service:

of digital platforms. The Company has witnessed The Company supports service requests from clients
significant growth in electronic transactions vis-à- such as change of bank account details, nominee
vis physical paper-based transactions. The Company updating, change of tax status etc. both physically as
provides end-to-end digital onboarding solutions for well as electronically throughout the life cycle of the
investors and its distributors. The Company has enabled client. We also proactively send reminders to the clients
its partners with both tools and educational webinars to update contact details, and conform to changing
on digital medium and it also runs extensive education regulatory requirements like FATCA/CRS, PAN Aadhaar
series for its partners on how to build digital presence. linking etc. from time to time.
Onboarding: Grievance Redressal Mechanism:

As a first step to beginning transactions with us, clients As part of the Grievance Redressal Policy, the Company
have to be KYC compliant. Clients have access to has a Complaint Management Platform to record and
multiple options where they can complete their KYC redress grievances/feedback from customers, which
while providing their investment applications. The help in ensuring standard operating procedures and
Company has tied up with the KYC Registration Agencies enhanced service standards. The Corporate Client
(KRA) to update and access client KYC information which Service (CCS) team is responsible for ensuring that
provides a seamless experience for the customer. The customer grievances are addressed in a timely manner
Company uses CKYCR, which is a government authorised and that responses sent are appropriate and meets the
registry where it can access as well as update customers requirements of customers.
KYC records. With Aadhaar based e-KYC service, the
Company has provided investors with the option to 2. If there are any significant social or environmental
complete KYC online and start investing directly through concerns and/or risks arising from production or
digital channels. disposal of your products / services, as identified in the
Life Cycle Perspective / Assessments (LCA) or through
Transactions:
any other means, briefly describe the same along-with
The Registrar and Transfer Agent (RTA), CAMS, forms action taken to mitigate the same.
the backbone for transaction processing, assisted by Not applicable
an able front office team at the head office/branches.
Investment in cutting-edge technology has enabled 3. Percentage of recycled or reused input material to total
increased scale and speed in processing transactions material (by value) used in production (for manufacturing
and digital fetch tools help in faster authentication industry) or providing services (for service industry).
of supporting documentation. Transaction bot and
Not applicable
WhatsApp have now been added to provide instant
access for transactions.
4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and
safely disposed, as per the following format.
FY 21-22 FY 20-21
Particulars
Re-used Recycled Safely Disposed Re-used Recycled Safely Disposed
Plastics (including packaging) - - - - - -
E-waste (in kgs) - - 831 - - 623
Hazardous waste
As the Company is into financial services, there are no hazardous waste generated.
5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
Indicate product category Reclaimed products and their packaging materials as % of total products sold in respective category
Not applicable

Principle 3: Businesses should respect and promote the well-being of all employees, including those in their value
chains
UN SDGs
1. a. Details of measures for the well-being of employees:
Life/ Accident
Health Insurance Maternity Benefits Paternity Benefits Day Care Facilities
Total Insurance
Category
(A) Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) (E) (E/A) (F) (F/A)
Permanent Employees
Male 814 814 100 814 100 NA NA NA NA
Refer
Female 337 337 100 337 100 337 100 NA NA
note below
Total 1,151 1,151 100 1,151 100 337 100 NA NA
Other than Permanent Employees
Male 921 921 100 921 100 NA NA NA NA
Refer
Female 180 180 100 180 100 180 100 NA NA
note below
Total 1,101 1,101 100 1,101 100 180 100 NA NA
Note: In compliance with the provisions of the Maternity Benefit Act
2. Details of retirement benefits for current and previous financial year

FY 21-22 FY 20-21
Benefits No. of employees Deducted and No. of employees Deducted and deposited
covered as a % of deposited with the covered as a % of with the authority
total employees authority (Y/N/N.A.) total employees (Y/N/N.A.)
PF 100% Y 100% Y
Gratuity 100% N.A. 100% N.A.
ESI 100% N.A. 100% N.A.
NPS* 100% 8% * N.A. N.A.
* NPS was made available for employees in FY21-22 and 8% of them opted for it.
3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements
of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this
regard.
Most of the offices are located in commercial premises which may be on the ground floor or have elevators and infrastructure
for differently abled persons; 75% of the Company’s offices have facilities for easy movement of differently abled visitors/
employees. Most of the office washrooms are specially abled friendly, as per the guidelines provided in RPWD act.
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide
a web-link to the policy.
Yes, conspicuously displayed at all business locations in accordance with the provisions of the Act.
5. Return to work and retention rates of permanent employees and workers that took parental leave.
Permanent Employees
Gender
Return to work rate in % Retention rate in %
Male NA NA
Female 85% 87%
Total 85% 87%

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and
worker? If yes, give details of the mechanism in brief.
Particulars Yes/No (If yes, then give details of the mechanism in brief)
Permanent Employees
Yes
Other than Permanent Employees
The Company has always followed an open-door policy, wherein any employee irrespective of hierarchy have access to the
business heads, HR, Legal & Compliance, senior management or other such members.
The Company has adopted a third-party web-based reporting tool which provides a secure and confidential platform
to report genuine concerns and can be accessed by all employees/ Directors/ stakeholders for lodging a complaint or
expressing genuine concerns.
In addition to that, a Whistle-Blower Policy has been formulated for employees and Directors to report concerns about
unethical behaviour, actual or suspected fraud or violation of the Company’s Code of Business Conduct and Ethics Policy.
The Company has zero tolerance for sexual harassment at the workplace and is compliant with provisions relating to
the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. The Company also has various online training modules and awareness programmes
which sensitise its employees on such issues.
The Company is committed to redressing every grievance of its employees in a fair and just manner. The Company provides
various channels of grievance redressal and safeguards employees against any form of victimisation.
7. Membership of employees and worker in association(s) or Unions recognised by the listed entity.
FY 21-22 FY 20-21
Category Total employees / No. of employees / workers in Total employees / No. of employees / workers in
% %
workers in respective respective category, who are workers in respective respective category, who are part of
(B/A) (D/C)
category (A) part of association(s) or Union (B) category (C) association(s) or Union (D)
Male
Female The Company does not have any employee associations.
Total
8. Details of training given to employees

FY 21-22 FY 20-21
On Health and On Skill On Health and On Skill
Category Total Safety Measures Upgradation Total Safety Measures Upgradation
(A) No. % No. % (D) No. % No. %
(B) (B/A) (C) (C/A) (E) (E/D) (F) (F/D)
Male 814 803 99% 870 706 81%
Female 337 1,003 87% 327 97% 376 191 15% 311 83%
Total 1,151 1,130 98% 1,246 1,017 82%
9. Details of performance and career development reviews of employees

FY 21-22 FY 20-21
Category Total No. % Total No. %
(A) (B) (B/A) (C) (D) (D/C)
Male 791 791 100% 809 809 100%
Female 315 315 100% 317 317 100%
Total 1,106 1,106 100% 1,126 1,126 100%
Remuneration for employees is as per the Nomination & Remuneration Policy of the Company. Further, the criteria for
the evaluation of remuneration for all non-managerial personnel is based on an appraisal process which is conducted on
a semi-annual basis. The increase in remuneration is also dependent on the overall performance of the Company and not
only on individual performance.

10. Health and Safety management system: 11. Details of safety related incidents, in the following
a. Whether an occupational health and safety management format:
system has been implemented by the entity? (Yes/ No). Safety Incidents/Numbers Category FY 21-22 FY 20-21
If yes, the coverage of such system? Lost Time Injury Frequency
There are no occupational health and safety risks Rate (LTIFR) (per one
considering the nature of the business. Employee million-person hours worked)
well-being and psychological safety continue to be a Total recordable
priority of the Company. Periodic trainings on fire safety work-related injuries Employees NIL NIL
and fire-fighting equipment are provided along with No. of fatalities
the evacuation drills. High consequence
work-related injury or
In the business environment dominated by the COVID-19
ill-health (excluding fatalities)
pandemic, the Company adhered to all the government
directives and issued travel and health advisories to its 12. Describe the measures taken by the entity to ensure a
employees. The Company advised all its employees to safe and healthy workplace.
work from home as required or on a rotational basis to
ensure employee safety and business continuity. Employee well-being and psychological safety continue
to be a priority for the Company. Fire drills and quality
assurance audits are conducted in the office premises to
b. What are the processes used to identify work-related
ensure the maintenance of safety standards.
hazards and assess risks on a routine and non-routine
basis by the entity? In the business environment dominated by the COVID-19
This is not directly applicable given the nature of pandemic, the Company continued to assist employees
business. However, to minimise risks in light of the and their families on all fronts to fight and overcome this
pandemic, the Company installed thermal scanners and serious challenge.
also took necessary precautions to identify the risks
The Company assessed the health, safety, and
associated with the pandemic. environment performance across all offices, which
included sanitisation of all office premises, removal of
c. Whether you have processes for workers to report the biometric scanners, installation of thermal scanners,
work-related hazards and to remove themselves from daily updates, restricted movements in common
such risks. (Y/N) areas, closure of recreational facilities and avoidance of
This is not directly applicable given the nature of business. large gatherings.
However, in light of the pandemic, the intimation of Detailed SOPs and guidelines/advisories were issued
symptoms/infections by employees and their family periodically to the employees of the Company.
members was done as per the process. The Company The Company adhered to directives issued by the
also organised vaccination camps for its employees to government/local authorities pertaining to COVID-19.
ensure employees’ safety is not compromised during The Company also created a safe environment with
this pandemic. necessary protocols in place for its essential employees
and those who needed to work from the office/branches
d. Do the employees/ worker of the entity have access whenever required. The Company organised vaccination
to non-occupational medical and healthcare services? camps for its employees to ensure their safety is not
(Yes/ No) compromised during the pandemic.
The Company provides facilities like medical Indoor air quality treatment is carried out to mitigate
consultations and regular health check-ups. The biological contamination to ensure better and
Company has partnered with a health care service hygienic indoor environment. This ensures preventive
provider, which offers 24x7 online medical consultations, maintenance against any air and surface contamination.
fitness and well-being programmes. Additionally, the
Company organises regular health check-up for its The Company installed Coronaguards at HO, which acts
employees. The Company provides its employees with as a complementary solution along with the use of PPE
group term life and personal accident cover in addition to (personal protective equipment) to reduce the burden
medical insurance. of indefinite social distancing. The device attenuates
and disables 99.9% of the corona family of viruses and
prevents its spread in the enclosed spaces.

13. Number of complaints on the following made by employees and workers

FY 21-22 FY 20-21
Type Filed during Pending resolution Filed during Pending resolution
Remarks Remarks
the year at the end of year the year at the end of year
Working Conditions NIL NIL - NIL NIL -
Health & Safety NIL NIL - NIL NIL -
14. Assessments for the year

Type % of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Health and safety practices 100%*
Working Conditions Nil
*The Company has entered into preventive periodic maintenance contracts which includes fire fighting equipment. The Company has also appointed
quality assurance auditors.
15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on
significant risks / concerns arising from assessments of Health & Safety practices and working conditions.
This is not directly applicable given the nature of business. However, in view of the pandemic situation, the Company took
various measures, which are covered in response to point no 12.
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B)
Workers (Y/N)
Yes, the Company provides its employees with group term life, personal accident cover, future service gratuity liability in
addition to medical insurance. Benefits like provident fund, gratuity, etc., are settled on a priority basis. The Company has,
in some cases, also extended support to families of deceased employees in the form of giving employment opportunity to
the spouses.
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by
the value chain partners.
The Company expects its value chain partners to follow business responsibility principles and values of transparency
and accountability and, accordingly, expects that statutory dues as applicable to the transactions within the remit of the
Company are deducted and deposited in accordance with the regulations. The organisation has appointed an independent
auditor to audit monthly statutory dues.
3. Provide the number of employees / workers having suffered high consequence work related injury / ill-health / fatalities
(as reported in Q11 of Essential Indicators above), who have been rehabilitated and placed in suitable employment or
whose family members have been placed in suitable employment:
No. of employees/workers that are rehabilitated
Total no. of affected
and placed in suitable employment or whose family
Category employees/ workers
members have been placed in suitable employment
FY 21-22 FY 20-21 FY 21-22 FY 20-21
Employees NA NA NA NA
Workers NA NA NA NA
There were no work-related injuries.

4. Does the entity provide transition assistance programs to facilitate continued employability and the management of
career endings resulting from retirement or termination of employment? (Yes/ No)
The Company has not undertaken any retrenchment of employees owing to business exigencies or employees not having
the requisite skills to do the required job. In line with the spirit of applicable law, as and when such step is required to be
taken due to business environment or force majeure circumstances, the Company will actively consider undertaking such
activities for outgoing employees.
The Company believes in hiring well qualified talent on merits and continuously upskills the work force to align with
the changing business environment. In light of this, the need for this transition assistance programmes are not
envisaged currently.

5. Details on assessment of value chain partners:

Type % of value chain partners (by value of business done with such partners) that were assessed
Health and safety practices These parameters are currently not explicitly assessed or measured.
Working Conditions
6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from
assessments of health and safety practices and working conditions of value chain partners.
Not applicable
Principle 4: Businesses should respect the interests of and be responsive to all its stakeholders
UN SDGs
1. Describe the processes for identifying key stakeholder groups of the entity.
The Company believes healthy stakeholder relationships are key to long-term value creation. Any individual or group of
individuals or institution that adds value to the business chain of the Company or who are impacted by us are identified as
a core stakeholder.
2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.
Whether Frequency of
identified as engagement
Channels of communication (Email, SMS, Newspaper, Purpose and scope of engagement including
Vulnerable & (Annually/ Half
Key Stakeholder Pamphlets, Advertisement, Community Meetings, key topics and concerns raised during such
Marginalised yearly/ Quarterly
Notice Board, Website), Other* engagement
Group (Yes/ / others – please
No) specify)
Customers Yes, as Branch assistance, emails, website, advertisements, Ongoing and Superior customer service throughout the
based on newspaper and other digital platforms, customer need based life cycle.
demographics helplines and toll-free numbers, customer To stay abreast of product features, benefits
satisfaction surveys. and risks.
Employees No Direct, email, CEO town halls, team meetings. Ongoing and Performance appraisal and rewards.
need based Training and career development.
Wellness & safety measures.
Shareholders No Quarterly earnings calls, emails, SMS, newspaper, At least To stay abreast of developments in the
advertisement, notices, website, Annual General quarterly and Company, Performance of the Company and
Meeting, intimation to stock exchanges, annual/ need based the sector, address concerns/grievances
quarterly financials and investor meetings /
conferences, investor presentation, press release,
annual reports, audio recording of earnings call,
transcripts etc.
Distributors No Physical, emails and other digital platforms. Ongoing and Enhanced reach/Trainings
need based
Regulatory Bodies No Emails, one-on-one meetings, conference calls, Need based Discussions with regard to various
video conferencing, websites. approvals, circulars, guidelines, suggestions,
amendments, etc.
AMFI No Emails, one-on-one meetings, conference calls, Need based Discussions with regard to various
video conferencing, websites. guidelines/investor education and reporting
Communities & Yes Emails, physical meetings, website and other digital Need based Monitoring & implementing the CSR projects
Implementing platforms. and activities
Agencies/ NGOS
Registrar and No Emails, physical meetings, website, and Ongoing and Ensure seamless operations, data and
Transfer Agent other digital platforms. need based integrity, compliance.
Vendors, Bankers, No Emails, physical meetings, website, and Ongoing and Product & Service quality and support,
Custodians and other digital platforms. need based contract commercial and technical terms
others in value & conditions, custodial services, statutory
chain compliances
Media No Newspaper, advertisement, email, annual reports, Need based To stay abreast on the developments of the
website, transcripts conference and other meetings Company

1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social
topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
The Company encourages constant and proactive engagement with its stakeholders to better communicate its strategies
and performance. The Board is kept well-informed on various developments and feedback on the same is sought from
the Directors.
2. Whether stakeholder consultation is used to support the identification and management of environmental, and social
topics (Yes / No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were
incorporated into policies and activities of the entity.
Customer complaints/grievances are reviewed for a root cause analysis, which also gives an opportunity to improve its
services. At the same time, the Company recognises that it is still in a learning phase on various evolving aspects and
hence stakeholder interactions are important. The Company tries to engage with consultants and experts in this field,
which helps to better understand expectations of stakeholders.
3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalised
stakeholder groups.
As an investment manager, with the aim to serve the bottom-of the-pyramid customers, the Company has started SIP
arrangement of as little as ` 300 depending on factors such as income, risk appetite and financial goals.
The details of the Company’s CSR initiatives project/programmes and activities are provided in Annexure of the Annual
report. The CSR Policy of the Company is uploaded on its website and can be viewed at https://www.hdfcfund.com/about-
us/corporate/csr.
Principle 5: Businesses should respect and promote human rights

UN SDGs
1. Employees and workers who have been provided training on human rights issues and policy (ies) of the Company:
FY 21-22 FY 20-21
Category No. of employees No. of employees
Total % Total %
/ workers / workers covered
(A) (B/A) (C) (D/C)
covered (B) (D)
Permanent 1,151 1,151 100% 1,246 1,246 100%
Other than permanent 1,101 1,101 100% 1,127 1,127 100%
Total Employees 2,252 2,252 100% 2,373 2,373 100%
The Company promotes a culture of fairness and inclusion. It is the policy and practice of the Company to provide equal
employment opportunity to all persons. The Company’s value system encourages dignity of labour. Its policies and
managerial framework ensure that all fundamental and human rights of employees are fully protected.
Policies and processes like POSH, Whistleblower, Grievance Redressal, Equal Employment Opportunity, Code of Conduct
etc. are in place to protect human rights of employees.
The Company policies are well defined and are educated, trained, and disseminated through the electronic medium.

2. Details of minimum wages paid to employees and workers:

FY 21-22 FY 20-21
Equal to More than Equal to More than
Category Total Minimum Wage Minimum Wage Total Minimum Wage Minimum Wage
(A) No. % No. % (D) No. % No. %
(B) (B/A) (C) (C/A) (E) (E/D) (F) (F/D)
Permanent 1,151 - - 1,151 100% 1,246 - - 1,246 100%
Male 814 - - 814 100% 870 - - 870 100%
Female 337 - - 337 100% 376 - - 376 100%
Other than 1,101 726 66% 375 34% 1,127 726 64% 401 36%
Permanent
Male 921 717 78% 204 22% 942 717 76% 225 24%
Female 180 9 5% 171 95% 185 9 5% 176 95%
3. Details of remuneration/salary
Male Female
Category Median remuneration/ salary/ wages Median remuneration/ salary/ wages
Number Number
of respective category of respective category
Board of Directors
Executive Directors^ 1 7,36,83,376 - -
Non-Executive Directors^^ 7 38,00,000 2 29,50,000
Key Managerial Personnel 1# 1,81,43,952 1 92,94,608
Employees other than BoD and KMP* 738 10,61,785 287 6,46,512
^
MD & CEO
^^
Includes only directors who have received the remuneration during FY 21-22.
* Includes only employees who have worked for the entire 12-month period.
#
Represents aggregate salary of KMPs who have worked for part of the financial year. During the year, Mr. Piyush Surana, ceased to be CFO of the
Company w.e.f close of business hours of January 31, 2022 and Mr. Naozad Sirwalla was appointed as CFO w.e.f. February 1, 2022.
Note: Expenses towards gratuity and leave encashment provisions are determined actuarially on an overall basis at the end of each year and accordingly,
have not been considered in the above information. Perquisite value of stock options is excluded.
4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or
contributed to by the business? (Yes/No)
Yes, there are various committees responsible for human rights impacts and issues. For instance, the Company has zero
tolerance for sexual harassment at workplace and is compliant with provisions relating to the constitution of Internal
Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013. The Company has appointed a Nodal Officer who acts as a single point contact related to human rights issues.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
Respect for human rights is considered as one of the fundamental and core values of the Company. The Company strives
to support, protect, and promote human rights to ensure fair and ethical business and employment practices are followed.
There are committees and policies formed to handle grievances and complaints related to human rights issues. and the
details are placed on the intranet of the Company.
The Company has zero tolerance towards and prohibits all forms of child labour, slavery, forced labour, physical, sexual,
psychological, or verbal abuse.

6. Number of complaints on the following made by employees and workers:

FY 21-22 FY 20-21
Particulars Filed during Pending resolution Filed during Pending resolution
Remarks Remarks
the year at the end of year the year at the end of year
Sexual Harassment 1 0 Note NIL NIL -
Discrimination at NIL NIL - NIL NIL -
Workplace
Child Labour NIL NIL - NIL NIL -
Forced Labor/ NIL NIL - NIL NIL -
Involuntary Labour
Wages NIL NIL - NIL NIL -
Other Human Rights NIL NIL - NIL NIL -
Related Issues
ote: The complaint received was disposed of within the prescribed timelines in line with the provisions and spirit of the Sexual Harassment of Women
N
at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
The Company is committed to maintaining safe and harmonious business environment and workplace for everyone,
irrespective of the ethnicity, region, sexual orientation, race, caste, gender, disability, work, designation, and such other
parameters. The Company ensures sensitisation to important social factors like diversity and inclusion, workplace
practices and prohibition of economic, racial, or physical inequalities. The Company strives to support, protect, and
promote human rights to ensure fair and ethical business and employment practices are followed.
There are committees and policies formed to handle grievances and complaints related to human rights issues viz Internal
Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013, Whistle Blower Policy, etc. and the details are placed on the intranet of the Company.
For instance, 6 (six) Internal Committees (IC) for different zones were constituted in accordance with the Sexual Harassment
of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 with women employees being a majority and
an external member. The Policy, IC Members’ details and the penal consequences of violating the said Act/ Policy are
displayed at all offices/ ISCs and on the intranet of the Company. Regular employee awareness sessions are conducted to
generate awareness about the policy, reporting mechanism and prevention of sexual harassment at the workplace.
8. Do human rights requirements form part of your business agreements and contracts? (Yes/No)
Yes, in certain business agreements and contracts
9. Assessments for the year

Particulars % of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Child Labour
Forced Labour/Involuntary Labour
Sexual Harassment
7%
Discrimination at workplace
Wages
Others
10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 9 above.
Not applicable in view of point no 9.

1. Details of a business process being modified / introduced as a result of addressing human rights grievances/complaints.
The Company creates awareness about the Code of Conduct/policies to sensitise its employees. Employees of the
organisation undergo various training programmes and some of the modules are mandatory for the new recruits which
cover guidelines on Prevention of Sexual Harassment (POSH), information security, etc.
The Company strives to support, protect, and promote human rights to ensure fair and ethical business and employment
practices are followed, for instance 6 (six) Internal Committees (IC) for different zones were constituted in accordance with
the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, with women employees
being a majority and an external member. The Policy, IC Members’ details and the penal consequences of violating the said
Act/ Policy are displayed at all offices/ ISCs and on the intranet of the Company.
2. Details of the scope and coverage of any Human rights due diligence conducted.
Refer response number 7 of essential indicators and 1 as above.
3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of
Persons with Disabilities Act, 2016?
Most of the offices are located in commercial premises which may be on the ground floor or have elevators and infrastructure
for differently abled persons; 75% of the companies’ offices have facilities for easy movement of differently abled visitors/
employees. Most of the office washrooms are specially abled friendly as per the guidelines provided in RPWD act.
4. Details on assessment of value chain partners:

Particulars % of value chain partners (by value of business done with such partners) that were assessed
Sexual Harassment
Discrimination at Workplace
Child Labour
These parameters are currently not explicitly assessed or measured.
Forced Labour/Involuntary Labour
Wages
Other Human Rights Related Issues
5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 4 above.
Not applicable in view of point no 4.

Principle 6: Businesses should respect and make efforts to protect and restore the environment
UN SDGs
1. Details of total energy consumption (in Joules or multiples) and energy intensity:
Parameter FY 21-22 FY 20-21
Total electricity consumption (A)
Total fuel consumption (B)
Energy consumption through other sources (C) Refer response below
Total energy consumption (A+B+C)
Energy intensity per rupee of turnover (Total energy consumption/ turnover in rupees)
Note: if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name
of the external agency
The Company is into service-oriented business primarily involved in flow of information and financial transactions. The
Company does not track the energy consumed. However, the Company realises that there is a pressing need to conserve
energy and, accordingly the Company has taken various initiatives like deployment of timers for signage boards, replacing
conventional lighting with LED in most of the offices, deploying sensor based lighting in some places at head office.
2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and
Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have
been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
Not applicable
3. Provide details of the following disclosures related to water:

Water withdrawal by source (in kilolitres)
(i) Surface water
(ii) Groundwater
(iii) Third party water
(iv) Seawater / desalinated water
Refer response below
(v) Others
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v)
Total volume of water consumption (in kilolitres)
Water intensity per rupee of turnover (Water consumed / turnover)
Note: If any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name
of the external agency.
Taking the nature of business into consideration, the Company’s usage of water is restricted to human consumption
purposes only. Efforts have been made that water is consumed judiciously in the office premises.
Water conservation, optimal utilisation and management of water are not only vital for economic development but also for
the very survival of the living being. The Company has a STP (Sewage Treatment Plant) at its head office. The Company has
installed sensors in taps at its head office, where water consumption is high and aerator taps in most of the offices.

4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
As the Company’s usage of water is restricted to human consumption purposes only, the Company has not implemented a
mechanism for zero liquid discharge. However, the Company has taken various initiatives as mentioned above to consume
water judiciously.
5. Please provide details of air emissions (other than GHG emissions) by the entity
Note: If any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name
of the external agency.
Not applicable
6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity:
Parameter Unit FY 21-22 FY 20-21
Total Scope 1 emissions Metric tonnes of
(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 2 emissions Metric tonnes of Refer response below
(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 1 and Scope 2 emissions per rupee of turnover
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
The Company is into service-oriented business primarily involved in flow of information and financial transactions and at
the same time realizes the adverse impact of direct and indirect emissions to the environment. The Company does not
measure the same but has taken various proactive steps to keep the greenhouse gas emissions as low as possible. Please
refer response to point no 7 below.
7. Does the entity have any project related to reducing Green House Gas emission? If yes, then provide details.
The Company is shifting towards green methods of conducting business, such as shifting towards electronic transactions
by creating a robust digital infrastructure, eliminating paper reports and forms wherever possible, recycling and reducing
waste in all premises, etc. form part of the Company’s contribution towards this cause.
The Company launched the ‘NurtureNature’ campaign with an intent to increase awareness towards the environment. A
tree was planted for every equity SIP which was registered in digital mode for a specific tenure.
The Company has installed inverter AC & VRF systems to meet 10% of its requirement. It maintains optimum temperature,
which is in line with the guidelines of ‘ASHRAE’ for HVAC.
The Company’s corporate office in Mumbai is LEED Gold’ certified since 2014.
8. Provide details related to waste management by the entity

Total waste generated & safely disposed (in kgs)
Plastic waste (A) - -
E-waste (B) (in kgs) 831 623
E-waste generated by the company is processed in an eco-friendly manner and the Company has accordingly received the
certificate from e-waste vendor ‘Just Dispose Recycling Pvt. Ltd’.

9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted
by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices
adopted to manage such wastes.
As the Company is into financial services, the Company does not require any hazardous and toxic chemicals. The
Company’s process of managing e-waste is validated by an external agency. The Company’s head office has systems in
place to convert wet waste into manure.
10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries,
biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental
approvals / clearances are required.
Sr. Whether the conditions of environmental approval / clearance are being complied
Location of operations/offices Type of operations
No. with? (Y/N) If no, the reasons thereof and corrective action taken, if any
The Company does not have any offices in ecologically sensitive areas
11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the
current financial year
Whether conducted by
Name and brief Results communicated in
EIA Notification No. Date independent external Relevant web link
details of project public domain (Yes / No)
agency (Yes / No)
Not Applicable
12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water
(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and
rules thereunder (Y/N). If not, provide details of all such non-compliances.
Any fines / penalties / action taken by
Sr. Specify the law / regulation / guidelines Provide details of the
regulatory agencies such as pollution Corrective action taken, if any
No. which was not complied with non-compliance
control boards or by courts
Not applicable
1. Break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable sources
From Renewable Sources
Total electricity consumption (A)
Total fuel consumption (B) Refer point no. 1 of
Energy consumption through other sources (C) essential indicators
Total energy consumed from renewable sources (A+B+C)
From Non-Renewable Sources
Total electricity consumption (D)
Total fuel consumption (E) Refer point no. 1 of
Energy consumption through other sources (F) essential indicators
Total energy consumed from non-renewable sources (D+E+F)
2. Details related to water discharged

Refer point 3 of essential indicators for initiatives taken in this context.

3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres)
Not applicable
4. Please provide details of total Scope 3 emissions and its intensity.

The Company is into service-oriented business primarily involved in flow of information and financial transactions and at
the same time realises the adverse impact of direct and indirect emissions to the environment. The Company does not
measure Scope 3 emissions.
5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details of
significant direct and indirect impact of the entity on biodiversity in such areas along with prevention and remediation
activities.
Not applicable
6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource
efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same
as well as outcome of such initiatives:
The Company is into service-oriented business primarily involved in the flow of information and financial transactions and
hence the Company’s carbon footprint is limited to the use of consumables, such as paper, plastic, office equipment, water
and energy. The Company has taken some initiatives as described below in view of the same.
Sr.
Initiative undertaken Details of the initiative (Web link, if any, may be provided along-with summary) Outcome of the initiative
No.
1. The Company has consistently invested in technology and built a robust digital environment in the organisation; 76% of transactions were
executed digitally in FY 21-22.
2. 831 kgs of e-waste generated by the Company was processed in an eco-friendly manner.
3. Deployment of timers for signage boards.
4. Installation of low consumption, energy-efficient fittings, including automatic lighting, water aerators/sensor taps, air dryers, etc.
5. A tree was planted for every equity SIP which was registered in a digital mode for a specific tenure.
6. The Company has installed inverter AC & VRF systems to meet 10% of its requirement.
7. Replacement of plastic water bottles with glass/steel bottles.
7. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
Yes, the Company has devised a robust disaster recovery and business continuity plan with strategies like utilising
branches as alternate sites, work from home and IT disaster recovery site, which are tested on a regular basis. Critical data
is replicated every hour to both the intra-city and inter-city sites, while non-critical user data is replicated every 24 hours
to the Far DR site. All databases are replicated to DR site as per the RPO (Recovery Point Objective). These plans also cover
the entire operations of the AMC, and these are periodically tested and placed before the Board of Directors for review.
During the COVID-19 pandemic, BCP plans were fully tested, and all the critical functions worked seamlessly from alternate
sites, the Virtual Private Network connectivity ensured that all the critical functions not only worked seamlessly from
home but also adhered to all regulatory timelines.
8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation
or adaptation measures have been taken by the entity in this regard?
Not applicable
9. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental
impacts.
Not applicable

Principle 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is
responsible and transparent
UN SDGs
1. a. Number of affiliations with trade and industry chambers/ associations.
The Company is member of three trade and industry chambers/associations.
b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the
entity is a member of/ affiliated to:
Sr.
Name of the trade and industry chambers/ associations Reach of trade and industry chambers/ associations (State/National)
No.
1 Association of Mutual Funds in India (AMFI) National
2 Indian Association of Alternative Investments Funds (IAAIF) National
3 Bombay Chamber of Commerce and Industry State
2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity,
based on adverse orders from regulatory authorities.
Name of authority Brief of the case Corrective action taken
No material instances reported
1. Details of public policy positions advocated by the entity:
Sr. Public policy Method resorted for Whether information available Frequency of Review by Board (Annually/ Half Web link, if
No. advocated such advocacy in public domain? (Yes/No) yearly/ Quarterly / Others – please specify) available
The Company actively engages in investor education programmes for mutual funds in line with AMFI guidelines. Also, the Company has
advocated through AMFI, various governance, administration, economic and educational reforms.

Principle 8: Businesses should promote inclusive growth and equitable development

UN SDGs
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current
financial year.
Whether conducted by
Name and brief Date of Results communicated in
SIA Notification No. independent external Relevant Web link
details of project notification public domain (Yes / No)
agency (Yes / No)
Not applicable*
* Social Impact Assessments (SIA) w.r.t. Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by
your entity.
Sr. Name of Project for which No. of Project Affected % of PAFs covered by Amounts paid to PAFs in the FY
State District
No. R&R is ongoing Families (PAFs) R&R (In INR)
Not applicable
3. Describe the mechanisms to receive and redress grievances of the community

Given the nature of the business, this is not applicable. Also, the Company carries its CSR activities through various
implementing agencies.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers
Particulars FY 21-22 FY 20-21
Directly sourced from MSMEs/ small producers
NA
Sourced directly from within the district and neighbouring districts
*Not applicable taking the nature of business into consideration
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
(Reference: Question 1 of Essential Indicators above)
Details of negative social impact identified Corrective action taken
Not applicable in view of Question 1 of Essential Indicators
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as
identified by government bodies
Sr. Amount spent
State Aspirational District
No. (In INR)
1. Madhya Pradesh Vidisha & Khandwa 1,47,41,439
2. Jharkhand Garhwa, Chatra, Godda, Lohdarga, Latehar, Ramgarh, Khunti & Simdega 2,13,00,000

3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising
marginalized /vulnerable groups? (Yes/No)
(b) From which marginalised /vulnerable groups do you procure?
(c) What percentage of total procurement (by value) does it constitute?
Given the nature of the business, purchases from suppliers under the above mentioned groups are limited. However during
the year, the Company procured various articles that include laptop bags, etc. from NGOs like the National Association
of Disabled’s Enterprises (NADE), Jai Vakeel Foundation, etc. These organisations support and serve visually impaired,
hearing/speech impaired, orthopedically and mentally challenged adults and children.
4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the
current financial year), based on traditional knowledge
Sr. Intellectual Property based on Owned/ Acquired Benefit shared Basis of calculating
No. traditional knowledge (Yes/No) (Yes / No) benefit share
Not applicable
5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes
wherein usage of traditional knowledge is involved.
Name of authority Brief of the case Corrective action taken
Not applicable
6. Details of beneficiaries of CSR Projects

% of beneficiaries
Sr. No. of persons benefitted
CSR Project from vulnerable and
No. from CSR Projects
marginalized groups
1. CSR Projects for Healthcare
• Indian Cancer Society – Cancer Support Cancer Patients – 2,989
• Head and Neck Cancer Institute of India – Cancer Support Equipment Attendants – 2,026
• Deepshika – Cancer Support Vaccinations – 1,00,301 Doses
The objectives of the
• Doctors For You – Vaccination Camps CSR projects is to
2. CSR Projects for Education reach underprivileged,
• Ashoka University – Quality Infrastructure low-income cancer patients,
• Parivaar Seva Kutirs in Madhya Pradesh – Overall development & nutrition Students – 4,98,767 women and children who
are highly vulnerable to
• Snehalaya – Foundational Learning & Life Skills Teachers – 68
exploitation, victimisation
• Muktangan – Foundational Learning & Life Skills and trafficking, including
• Sampark Foundation – Foundational Learning orphans, street children,
3. CSR Projects for Environment Sustainability abandoned children, and
Hamlets – 70 extremely impoverished
• Rotary Club of Bombay - Urban Forest Project
(Population of ~30,000) children from tribal areas.
• Aroehan – Livelihood
Households – 92
• Rotary Club of Bombay – Water Lift Irrigation Project
4. CSR Projects for Sports 113 Athletes
• Olympic Gold Quest – Training, Coaching, Equipment and Sports Science 16 Para Athletes
Note: Numbers indicate beneficiaries of CSR projects through the CSR partners during the FY 21-22.

Principle 9: Businesses should engage with and provide value to their consumers in a responsible manner
UN SDGs
1. Describe the mechanisms in place to receive and Escalation:
respond to consumer complaints and feedback. Investors can also write to our Grievance Redressal
At HDFC AMC, providing excellent service has been the Officer at the email ID - gro@hdfcfund.com in case they
cornerstone of customer centricity. The Company always are not satisfied with our response.
endeavours to raise those standards that truly reflect
In case the investor is still not satisfied with our
the brand. In a world where customers are increasingly
responses, he/she can further lodge a complaint in
better informed, it is imperative that company’s frontline
electronic mode with SEBI on SEBI’s portal – ‘SCORES’
service support is agile, well-trained and customer
(SEBI Compliant Redressal System), which is a centralised
centric. The Company relentlessly educates its staff on
web based complaints redress system. These complaints
these objectives.
are received by the Company for resolution, and the
resolution is updated in the portal.
Mechanism to receive the Consumer complaints and
feedback
Mechanism to respond to consumer complaints:
As part of our endeavour in offering the very best of
All queries and complaints received across touch points
products and ensuring high service standards, we believe
are auto uploaded into a Complaint Management
that our customers should be able to seamlessly contact
Platform which has a rule-based allotment to the
us to offer their comments on our products/services and
branches and central staff who respond to customers.
also to air their grievances. The Company has put in place
There are defined service levels assigned for each type
a Customer Query & Grievance Redressal Policy and set
of complaint.
up processes and technology supported infrastructure
to support this function. As part of the policy, the The Company regularly undertakes Root Cause Analysis
management continuously reviews the grievances of the top complaint types with the help of the service
to systemically strengthen its processes leading to team at branches who are supported by the Corporate
progressive reduction in complaints. The following are Client Services (CCS) team at the corporate office.
the various avenues for the customer to contact/write Regional Service Managers (RSMs), who focus on service
to us, depending on their convenience. delivery across various regional offices, conduct periodic
visits to branches and engage with the staff and augment
E-mail: support to the branches, besides seeking feedback.
Investors can email us at our corporate email id - hello@ The CCS team engages with these RSMs to work on the
hdfcfund.com for any queries, complaints or feedback feedback and also trains them routinely. Service delivery
they have. They can also post their grievances/feedback/ and quality assessment are measured, using multiple
queries/complaints on the ‘Write to Us’ link available on parameters like turnaround time, repeat complaints,
the website (https://www.hdfcfund.com/contact-us/ escalations etc. which are evaluated on a periodic basis
get-in-touch). Alternatively, they can also write to the to improve and provide seamless delivery.
RTA CAMS on enq_h@camsonline.com.
The Compliance team also oversees redressal of
customer grievances.
Call centre:
The Company has put in place a Stakeholders’
Investors can call us from 9.00 am to 6.00 pm (Monday
Relationship Committee, which reviews the activities
to Friday) and 9.00 am to 1.00 pm (Saturday) on the toll-
carried out by the Investor Service Centers (ISCs) /
free numbers 1800 3010 6767/ 1800 419 7676. Investors
branches of the Company and their adherence to service
calling from abroad can call us on 91 44 33462406.
standards, reviews the steps taken by the Company to
redress the grievances of the investors and the cases,
SMS:
if any, pending before the Courts/ Forums/ Regulatory
Investor can SMS ‘HDFCMF’ to 56767. Authorities against the Company etc.

It is important that all stakeholders who work towards enhancing customer experience should work in tandem. The RTA,
CAMS, forms the backbone of service delivery chain. The Company works closely with CAMS to ensure smooth operations
and seamless client experience.
2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:
Particulars As a percentage to the total turnover
Environmental and social parameters relevant to the product
Safe and responsible usage Not applicable
Recycling and/or safe disposal
3. Number of consumer complaints in respect of the following:

FY 21-22 FY 20-21
Particulars Received during Pending resolution Received during Pending resolution
Remarks Remarks
the year at end of year the year at end of year
Data privacy - - - - - -
Advertising - - - - - -
Cyber-security - - - - - -
Delivery of essential 2,598 8 - 3,164 22 -
services
Restrictive Trade - - - - - -
Practices
Unfair Trade Practices - - - - - -
4. Details of instances of product recalls on account of safety issues

Particulars Number Reasons for recalls
Voluntary recalls
NIL NIL
Forced recalls
5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available,
provide a web-link of the policy.
Yes, the company has Board approved Information Security Policy, Cyber Security Policy, Cyber Crisis Management Policy
and Business Continuity Policy. Given the rapid technological and digital advancement, cyber risks are inevitable. The
Company has a strong Cyber Risk Management framework wherein cyber risk and its mitigation are monitored by the
Information Technology & Security Committee and Risk Management Committee.
Key areas covered under the cyber risk management include strong adherence to the Board approved Information and
Cyber Security policies, compliance with SEBI guidelines and ISO 27001 standards to ensure that the Company is in line with
industry best practices. The Company maintains a robust cyber security architecture and has in place a cyber-resilience
framework to protect the integrity of data and guard against breaches of privacy. The Company also trains employees on
cyber security.
The Company ensures that cyber security controls and practices are embedded into the business process and it follows
concept of ‘Security by Design’. Enhanced cyber security practices and effective governance have resulted in matured
cyber security frameworks. IT assets are reviewed and audited regularly by independent agencies. Systems are subject
to intense scrutiny and validations in the systems audit. Proactive measures are taken to ensure that they are adequately
protected against external threats.

6.
Provide details of any corrective actions taken or As part of the Go Green initiative in mutual funds, and
underway on issues relating to advertising, and delivery providing information to investors in a cost effective
of essential services; cyber security and data privacy yet transparent manner, the following steps have
of customers; re-occurrence of instances of product been implemented:
recalls; penalty / action taken by regulatory authorities
• We do not encourage printing of physical account
on safety of products / services.
statements at branches and instead request
No penalties/regulatory action has been levied or taken clients / distributors to opt for statements through
on the above-mentioned parameters. electronic mode
Leadership Indicators • Customers are able to raise and process most of their
service requests electronically with the confirmations
1. Channels / platforms where information on products also being sent to them electronically
and services of the entity can be accessed (provide web
• Latest NAVs of all schemes have been prominently
link, if available)
disclosed under a separate head on our website
The information on various products & services of the and is also provided through SMS and call centre
Company is available on: upon request
• Website: www.hdfcfund.com • A tree was planted for every equity SIP which was
• Company’s Mobile applications – HDFC MF Online – registered in a digital mode for a specific tenure under
Investors, and HDFC MF Online – Partners ‘Nurture Nature’ campaign.
• All leading Fintech Platforms 3. Mechanisms in place to inform consumers of any risk of
• Distributors disruption/discontinuation of essential services.
The Company has devised a robust Disaster Recovery
• MF Central: www.mfcentral.com
(DR) and Business Continuity Plan (BCP) which
• Call centre @ 1800 3010 6767 / 1800 419 7676 covers its entire operations. Communications on any
disruption/ discontinuation of essential services, albeit
• HDFC AMC Branches
rare, are intimated to customers through emails, call
• CAMS Service Centres centres, the Company’s website and other modes of
electronic communication.
• CAMS investor portal: mycams.camsonline.com
The Company continued to offer seamless service to
2. Steps taken to inform and educate consumers about its customers during the pandemic as the BCP was fully
safe and responsible usage of products and/or services. tested and all the critical functions worked without
The Company complies with all disclosure requirements disruption from alternate sites, while adhering to all
relating to its products and services, as per AMFI/SEBI regulatory timelines.
guidelines on product labelling within risk and disclosure As part of the QRTA compliance, CAMS conducts
categories. The Company has annual disclosure of BCP drill every six months including unannounced
riskometers, which covers scheme-wise risks and is drills. The BCP has been successfully invoked over the
available on the Company’s website. The Company years due to floods, cyclone etc. and also during the
also has product literatures which has a riskometer for ongoing pandemic. The BCP is a part of the governance
various product schemes. framework. As part of the plan, the workforce of 500+
For the safety of the customer, the Company sends employees (~30% of overall workforce) operates out of
communications to educate and advise customers on their alternative site in Coimbatore, thus ensuring that
guarding themselves against financial frauds. all critical services can operate independently from
either site. Two DR Data Centres have been set up, one in
Chennai (near site) which is the primary data centre and
the other in Mumbai (far site). The management of both
the AMC and CAMS regularly review the BCP and DR plans
and strengthen these further in order to ensure that we
continue to support our clients during any exigency.

4. Does the entity display product information on the

IVR CSAT (Interactive Voice Response Customer
product over and above what is mandated as per local Satisfaction) survey is conducted by the call centre in
laws? (Yes/No/Not Applicable) If yes, provide details order to record the pulse/experience of the investor.
in brief. Once the query is resolved, the customer can rate his/
The Company has always believed in being transparent her experience on the call via a short IVR survey. The
with its customers by providing all the relevant details. survey is captured real time. As a follow up activity, those
Product communication is done through SMS, mails who have provided low ratings are called back to seek
and other platforms. The Company also displays the feedback on improvement areas.
following documents on the website:
5. Information relating to data breaches:
• Fact sheet
a.
Number of instances of data breaches
• Scheme performance along-with impact
• Product literature b. Percentage of data breaches involving personally
identifiable information of customers
Did your entity carry out any survey with regard to • The Company maintains a robust cyber security
consumer satisfaction relating to the major products / architecture to protect the integrity of data and guard
services of the entity, significant locations of operation against breaches of privacy.
of the entity or the entity as a whole? (Yes/No)
• The Company is also aware of the human element
The Company seeks feedback from its customers at of cyber security and data privacy. It sends
various stages and customer complaints/grievances communication to educate and advise customers on
are reviewed for a root cause analysis, which also gives these practices to prevent any breaches at their end.
opportunity to improve the services.
• The Company did not witness any instances of data
breaches during the year. The Company also has
cyber risk insurance policies.

STATUTORY REPORTS CORPORATE GOVERNANCE REPORT
Corporate Governance Report
Philosophy on the Code of Governance Board of Directors

Your Company believes that corporate governance practices The Company’s Board is diverse with a mixed blend of
begin with the mindset and the culture of the organization expertise, professionals and experience. It comprises eleven
and these corporate governance values and principles have members as on March 31, 2022, of which ten are Non-Executive
been inherited by us from our parent Company, Housing Directors including the Chairman and one Executive Director
Development Finance Corporation Limited (HDFC Ltd). i.e., the Managing Director & Chief Executive Officer (CEO).
Your Company’s philosophy on corporate governance is Of the ten Non-Executive Directors, six are Independent
showcased through its ethical corporate behavior, fair and Directors. None of the Directors of your Company are
transparent disclosures and commitment to regulatory related to each other or are debarred from holding the office
compliances, environmental and societal obligations. The of director by SEBI or any other authority. They have also
Company’s focus is on long term value creation for all its confirmed that they satisfy the fit and proper criteria as
stakeholders and fulfilling the Company’s mission of “To be prescribed under the applicable regulations. The composition
the wealth creator for every Indian”. To achieve this mission, of the Board is in conformity with the Securities and
the Company has been incorporating the core principles of Exchange Board of India (Listing Obligations and Disclosure
Corporate Governance in its business activities, policies Requirements) Regulations, 2015 (“Listing Regulations”) and
and practices. The Company’s board has been proactively the Companies Act, 2013 (“the Act”).
involved and guiding the Management of the Company
For a brief profile of the Board members, refer to page 30 of
to align its business and sustainability practices on the
this Annual Report.
core principles of Company’s corporate governance i.e.,
itegrity, accountability, transparency and responsibility. Our
Board evaluates and reviews the Company’s strategic
business plans, effectiveness of policies mandated under
various regulations.

Directorship and membership on the board/board committees of other public companies

As on March 31, 2022
Number of
Name of Number of Listed Entities
Category committees**
Director Directorships*
Member Chairman Name of the Company Nature of Directorship
Mr. Deepak S. Non-Executive 4 1 - 1. Siemens Limited Independent Director
Parekh Non-Independent (Chairman)
Director 2. HDFC Life Insurance Company Non-Executive Director
Limited (Chairman)
3. Housing Development Finance Non-Executive Director
Corporation Limited (HDFC Ltd) - (Chairman)
Mr. Keki M. Mistry Non-Executive 5 6 2 1. Tata Consultancy Services Independent Director
Non-Independent Limited
Director 2. Torrent Power Limited Independent Director
3. HDFC Life Insurance Company Non-Executive Director
Limited
4. HDFC Ltd Vice Chairman & CEO
Ms. Renu Sud Non-Executive 7 5 2 1. HDFC Life Insurance Company Non-Executive Director
Karnad Non-Independent Limited
Director 2. HDFC Ltd Managing Director
3. HDFC Bank Limited Nominee Director
4. GlaxoSmithKline Pharmaceuticals Non-Executive Director
Limited (Chairperson)
5. Unitech Limited Nominee Director
Mr. Rushad Non-Executive - - - - -
Abadan Non-Independent
Director
Mr. Dhruv Kaji Non-Executive 3 5 1 1. Network18 Media & Investments Independent Director
Independent Director Limited
2. Ceinsys Tech Limited Independent Director
3. TV18 Broadcast Limited Independent Director
Mr. Jairaj Non-Executive 1 1 1 - -
Purandare Independent Director
Mr. Sanjay Non-Executive 6 5 4 1. The Tata Power Company Limited Independent Director
Bhandarkar Independent Director 2. Chemplast Sanmar Limited Independent Director
Mr. Parag Shah Non-Executive 5 - - - -
Independent Director
Ms. Roshni Nadar Non-Executive 1 1 - 1. HCL Technologies Limited Non-Executive Director
Malhotra Independent Director
Mr. Shashi Kant Non-Executive 2 2 - - -
Sharma Independent Director
Mr. Navneet Executive Director - - - - -
Munot - Managing
Director & Chief
Executive Officer
Notes:
- Mr. James Aird ceased to be Non-Executive Director of the company w.e.f. the close of business hours of October 25, 2021.
- Mr. Shashi Kant Sharma ceased to be Independent Director of the Company w.e.f. April 11, 2022.
* Excludes directorship in Private Limited Companies, Foreign Companies and Section 8 Companies. Also excludes directorship in the Company.
** Membership and Chairmanship in Audit Committee and Stakeholders Relationship Committee in all public limited companies have been
considered. Also, excludes chairmanship and membership in the Company.

Skills/Expertise/Competence of the Board of Directors

The Board identified, inter alia, the following core skills/expertise/competencies to ensure the Board’s effective
composition to discharge its responsibilities and duties required to govern your Company and also be compliant with
the applicable regulations.
Name of the Director Qualification Field of specialisation

Mr. Deepak S. Parekh, Fellow of the Institute of Chartered Accountants - International Expertise/Strategic Planning
Chairman (England & Wales) - Risk Management Expertise
- Financial Expertise
- Marketing Expertise
- Operational Expertise
- Industry Expertise
- Regulatory Expertise
- Mergers and Acquisitions
Mr. Keki M. Mistry Fellow of the Institute of Chartered Accountants of India - Risk Management Expertise
Ms. Renu Sud Karnad Master’s degree in Economics from University of Delhi; - Risk Management Expertise
Graduate in law from University of Mumbai; Parvin - Financial Expertise
Fellow – Woodrow Wilson School of International - Legal Expertise
Affairs, Princeton University, US - Industry Expertise
Mr. Rushad Abadan Bachelor’s degree in Commerce from Sydenham College, - Legal Expertise
Mumbai; Graduate in law from Government Law College, - Risk Management Expertise
Mumbai; Solicitor – India; Solicitor – England and Wales - Financial Expertise
- Industry (Asset Management Business) Expertise
Mr. Dhruv Kaji B. Com. (University of Mumbai), Chartered Accountant - International Expertise/Strategic Planning
Mr. Jairaj Purandare B.Sc. (Hons), University of Mumbai; Chartered - International Expertise/Strategic Planning
Accountant - Financial Expertise
Mr. Sanjay Bhandarkar B. Com., University of Pune; MBA, XLRI Jamshedpur - Technology/Digital Media Expertise
- Risk Management Expertise
Mr. Parag Shah Bachelor’s degree in Science - International Expertise/Strategic Planning
(Computer Engineering) from the Illinois Institute of - Technology/Digital Media Expertise
Technology; Graduate of the General Management - Financial Expertise
Program of the Harvard Business School - Industry Expertise
Ms. Roshni Nadar Malhotra MBA from the Kellogg Graduate School of - International Expertise/Strategic Planning
Management, Northwestern University - Financial Expertise
Mr. Shashi Kant Sharma M.A. in Political Science, University of Agra; M.Sc. in - International Expertise/Strategic Planning
Administrative Science and Development Problems, - Financial Expertise
University of York (UK); IAS (1976 batch) - Risk Management Expertise
Mr. Navneet Munot Master’s degree in Commerce; Chartered Accountant; - International Expertise/Strategic Planning
Chartered Financial Analyst; Chartered Alternative - Risk Management Expertise
Investment Analyst; Certified Financial Risk Manager - Financial Expertise
- Legal Expertise

Responsibilities Meeting of Independent Directors

Your Company has a well-defined framework that enables Independent Directors are mandated to hold at least one
the Board to provide strategic direction and effective meeting in a financial year, where Non-Independent Directors
oversight of the Management. The Board also ensures that are not present. In such meetings, the Independent Directors
your Company’s existing corporate governance practices are review the performance of Non-Independent Directors and
enhanced by incorporating values of fair business practices, the Board as a whole; the Chairman of the Company taking
transparency for promoting a culture of corporate and social into account the views of Executive/Non-Executive Directors;
responsibility. To focus on crucial issues, various Committees and assess the quality, quantity and timely flow of information
are constituted under the supervision of the Board with between your Company’s management and the Board that is
specific delegated responsibilities. necessary for the Board to effectively and reasonably perform
their duties.
The Board believes that the corporate governance practices
adopted by your Company empowers the executive to During FY 21-22, the Independent Directors met once on
effectively manage the Company’s affairs. The decision- March 29, 2022.
making powers entrusted to the executive management
with proper oversight and guidance by the Board enables Familiarisation Programme
the Company to achieve its vision, stakeholder aspirations As part of the Familiarisation Programme, the Directors of
and societal expectations. Codes and policies mandated as the Company are updated on regular basis with changes in the
per the applicable laws have been implemented in spirit and Mutual Fund industry, regulatory developments and different
letter by the Company. business practices adopted in the Industry. The programme
also includes an overview and outlook of the Indian economy,
Independent Directors markets, trends, risk management mechanism, among
Independent Directors are appointed/re-appointed based others. An orientation programme is conducted for the newly
on the recommendation of the Nomination & Remuneration inducted Independent Directors to introduce them to the
Committee (NRC) and approval of the Board. As required business practices, codes and policies, compliance practices,
under the Listing Regulations, for every appointment of corporate culture of the Company including the mutual fund
Independent Director, the NRC evaluates the balance of business, regulatory developments affecting the Company.
skills, knowledge and experience on the Board and on the
An overview of the familiarisation programme during the
basis of such evaluation, the NRC prepares a description of
year is available on your Company’s website at https://www.
the role and capabilities required of an Independent Director.
hdfcfund.com/about-us/governance/codes-policies.
The NRC ensures that person recommended to the Board
for appointment as an Independent Director shall have the
Board meetings
capabilities identified in such description. Re-appointments
are made based on evaluation of their contributions. The meetings of the Board of Directors are normally held
at your Company’s Registered Office in Mumbai. Video
For details on the terms and conditions of appointment of conferencing facilities are made available to conduct such
Independent Directors, visit your Company’s website at meetings in case physical presence is not possible. In view of
https://www.hdfcfund.com/about-us/governance/codes- the ongoing COVID-19 pandemic, all meetings of the Board
policies. and its Committees were held through video conferencing.
All the Independent Directors have confirmed that they The Chairman ensures that the meeting is conducted in such
meet the criteria as mentioned under Listing Regulations way that the business for which it was convened is properly
and Section 149 of the Act. The maximum tenure of attended to, and that all those entitled to may express their
Independent Directors is in accordance with the Act and other views and that the decisions taken by the meeting adequately
applicable Regulations. reflect the views of the meeting as a whole. He summarizes
Based on the declarations received from the Independent the discussions to ensure that members are in agreement
Directors, the Board is of the opinion that, all the Independent with the Board’s view on the issues discussed.
Directors fulfill the conditions specified in the Act, Listing At the Board/Committee meetings, the Managing Director
Regulations and are independent of the Management. & CEO and Senior Management, who are invited to those
Further, Mr. Shashi Kant Sharma (DIN: 03281847), Independent meetings, make presentations on various matters including
Director of the Company, has resigned as Director with effect the financial results, operations related issues, risk
from April 11, 2022, as he was not in a position to devote management, the economic and regulatory changes.
adequate time to the affairs of the Company due to his During the financial year, six (6) Board meetings were held i.e.
pre-occupation elsewhere. Mr. Sharma has confirmed that on April 27, 2021; July 16, 2021; October 25, 2021; December
there are no other material reasons for his resignation other 14, 2021; January 24, 2022 and March 29, 2022.
than the one mentioned above.

Attendance at 6 Board meetings held during FY 21-22 and at the last AGM
Number of Board meetings
Name of the Director Attendance at the 22nd AGM
Held during tenure Attended
Mr. Deepak S. Parekh 6 6 YES
Mr. Keki M. Mistry 6 6 YES
Ms. Renu Sud Karnad 6 5 YES
Mr. James Aird1 3 2 YES
Mr. Rushad Abadan 6 6 YES
Mr. Dhruv Kaji 6 6 YES
Mr. Jairaj Purandare 6 6 YES
Mr. Sanjay Bhandarkar 6 6 YES
Mr. Parag Shah 6 6 YES
Ms. Roshni Nadar Malhotra 6 6 YES
Mr. Shashi Kant Sharma 6 5 NO
Mr. Navneet Munot 6 6 YES

1
Mr. James Aird ceased to be Non-Executive Director of the Company w.e.f. the close of business hours of October 25, 2021.
To enable better and more focused attention on the affairs The Company Secretary acts as the Secretary to the Audit
of the Company, the Board delegates particular matters Committee. The Committee invites the Managing Director
to committees of the Board set up for the purpose. The & CEO, Chief Financial Officer, Head - Corporate Client
composition and functioning of these board committees is Services, Head – Operations, Chief Compliance Officer,
in compliance with the applicable provisions of the Act and other executives of the Company as it considers appropriate,
Listing Regulations. representatives of statutory auditor and representatives of
internal auditor to attend the meetings of the Committee.
There have been no instances where the Board has not
accepted any recommendation of any Committee of the The terms of reference for the Audit Committee
Board which is mandatorily required during the financial year. broadly include:
1. Oversight of the Company’s financial reporting
Audit Committee process and the disclosure of its financial information
The Audit Committee comprises of five (5) Non-Executive to ensure that the financial statement is correct,
Directors of which four are Independent Directors, who are sufficient and credible.
well-versed with accounting, financial matters and corporate
2. Recommendation for appointment, remuneration and
laws. The Chairman of the Audit Committee was also present
terms of appointment of auditors of the Company.
at the last AGM of the Company.
3. Approval of payment to statutory auditors for any other
During the year, Six (6) Audit Committee meetings were held services rendered by the statutory auditors.
i.e. on April 27, 2021; July 15, 2021; July 16, 2021; October 25,
4. Reviewing, with the management, the annual financial
2021; January 24, 2022 and March 29, 2022.
statements and the auditors’ report thereon, before
submission to the Board for approval, with particular
Audit Committee composition and attendance of
reference to:
members at the 6 meetings held in FY 21-22
a) matters required to be included in the Directors’
Number of meetings
Name of the Director Responsibility Statement to be included in the
Held during tenure Attended Board’s report in terms of clause (c) of sub-section
Mr. Dhruv Kaji (Chairman) 6 6 3 of Section 134 of the Act
Mr. Jairaj Purandare 6 6
b) changes, if any, in accounting policies and practices
Mr. James Aird1 4 3 and reasons for the same
Mr. Keki M. Mistry 6 6
c) major accounting entries involving estimates based
Mr. Sanjay Bhandarkar 6 6 on the exercise of judgement by management
Mr. Shashi Kant Sharma 6 5
d) significant adjustments made in the financial
1
Mr. James Aird ceased to be Non-Executive Director of the Company statements arising out of audit findings
w.e.f. the close of business hours of October 25, 2021.
e) compliance with listing and other legal requirements
relating to financial statements
f) disclosure of any related party transactions
g) modified opinion(s) in the draft audit report.

5. Reviewing, with the management, the quarterly financial 21. Carrying out any other function as is mentioned in the
statements before submission to the Board for approval. terms of reference of the Audit Committee.
6.
Reviewing, with the management, the statement of
uses/application of funds raised through an issue (public
Nomination & Remuneration Committee
issue, rights issue, preferential issue, etc.), the statement During FY 21-22, three (3) Nomination & Remuneration
of funds utilised for purposes other than those stated in Committee meetings were held on April 27, 2021; October 25,
the offer document/prospectus/notice and the report 2021 and January 24, 2022.
submitted by the monitoring agency monitoring the
utilisation of proceeds of a public or rights issue, and Composition of Nomination & Remuneration Committee
making appropriate recommendations to the Board to and attendance of members in meetings
take up steps in this matter. Number of meetings
Name of the Director
7. Reviewing and monitoring the auditor’s independence Held during tenure Attended
and performance, and effectiveness of audit process. Mr. Jairaj Purandare (Chairman) 3 3
Mr. Dhruv Kaji 3 3
8. Approval or any subsequent modification of transactions
Mr. Deepak S. Parekh 3 3
of the Company with related parties.
Mr. Parag Shah 3 3
9. Scrutiny of inter-corporate loans and investments.
The Company Secretary acts as the Secretary to the
10. Valuation of undertakings or assets of the Company, Committee.
wherever it is necessary.
The broad terms of reference of the Nomination &
11. Evaluation of internal financial controls and risk Remuneration Committee include:
management systems.
1. Identify persons who are qualified to become Directors
12. Reviewing with management, performance of statutory and who may be appointed in senior management in
and internal auditors, and adequacy of the internal accordance with the criteria laid down, recommend to
control systems. the Board their appointment and removal and carry out
13. To formulate the scope, functioning, periodicity and evaluation of every Director’s performance.
methodology for conducting the internal audit in 2. Formulate the criteria for determining qualifications,
consultation with the Internal Auditor. positive attributes and independence of a Director
14. Discussion with internal auditors any significant findings and recommend to the Board a policy, relating to
and follow up there on. the remuneration for the Directors, key managerial
personnel and other employees.
15. Reviewing the findings of any internal investigations
by the internal auditors into matters where there is 3.
Formulate criteria for evaluation of performance of
suspected fraud or irregularity or a failure of internal Independent Directors and the Board of Directors.
control systems of a material nature and reporting the 4. Devise a policy on diversity of Board of Directors.
matter to the Board.
5.
Review and recommend compensation payable to
16.
Discussion with statutory auditors before the audit the Managing Director/Whole Time Directors of the
commences, about the nature and scope of audit as well Company including any variation therein from time to
as post-audit discussion to ascertain any area of concern. time and administer the Company’s stock option plans
17. Looking into the reasons for substantial defaults in subject to the applicable law.
the payment to the depositors, debenture holders, 6. Whether to extend or continue the term of appointment
shareholders (in case of non-payment of declared of the Independent Director, on the basis of the report
dividends) and creditors. of performance evaluation of Independent Directors.
18.
Reviewing the functioning of the Whistle Blower 7.
To recommend to the Board, all remuneration, in
Mechanism. whatever form, payable to senior management.
19. Approval of appointment of Chief Financial Officer. 8. Any other matters/authorities/responsibilities/powers
20. Reviewing the compliance with the provisions of SEBI assigned as per the Act, Rules made thereunder and
(Prohibition of Insider Trading) Regulations, 2015 Listing Regulations, as amended from time to time.
at least once in a financial year and verify that the
systems for internal control are adequate and are
operating effectively.

Remuneration of Directors Executive Director

Nomination & Remuneration Policy The break-up of the pay scale, commission and quantum of
perquisites including, employer’s contribution to PF, gratuity,
The Nomination & Remuneration Policy, including the criteria
club fees, etc., is decided and approved by the Board on
for remunerating Non-Executive Directors is recommended
the recommendation of the Nomination & Remuneration
by the Nomination & Remuneration Committee and approved
Committee and would be within the overall remuneration
by the Board. The objective of the policy is to lay down criteria
approved by the shareholders. Stock Options are granted to
and terms and conditions with regard to identifying persons
the Managing Director & CEO of the Company as approved
who are qualified to become Directors (Executive and Non-
by the Nomination & Remuneration Committee. Terms of the
Executive) and persons who may be appointed in Senior
service, the notice period and severance fees are as per the
Management, Key Managerial positions and to determine
terms of agreement entered into by him with the Company.
their remuneration. The Nomination & Remuneration Policy
can be accessed on your Company’s website at https://www.
Evaluation of the Board and Directors
hdfcfund.com/about-us/governance/codes-policies.
During the year, the Board carried out an annual evaluation
Non-Executive Directors of its own performance, board committees and individual
directors pursuant to the provisions of the Act and Listing
The remuneration paid to Non-Executive Directors consists
Regulations. The Board on the recommendations of the
of sitting fees and commission. Further, the expenses for
Nomination & Remuneration Committee approved the
participation in the Board and other meetings are reimbursed
criteria for annual evaluation which were broadly based on the
to the Directors other than directors nominated by abrdn
Guidance Note on Board Evaluation issued by the Securities
Investment Management Limited (formerly Standard Life
and Exchange Board of India on January 5, 2017.
Investments Limited) including remuneration. Stock Options
may be granted to the Non-Independent Directors as Each board member was required to fill the board evaluation
approved by the Committee. No stock options are granted to questionnaire online and the questionnaire were divided
Independent Directors. into different sections viz. Evaluation of Non-Executive/
Independent Directors; Evaluation of Board as a whole;
There were no other pecuniary relationships or transactions
Evaluation of Board Committees; Evaluation of Chairman and
of Non-Executive Director vis-à-vis the Company.
Evaluation of Executive Director.
Details of the remuneration and shareholding of Directors of the company for the financial year 2021-22 are as follows:
Salary Perquisites Sitting fees Commission* Total
Name of Directors Shareholding
(in `) (in `) (in `) (in `) (in `)
Mr. Deepak S. Parekh - - 18,00,000 20,00,000 38,00,000 1,60,000
Mr. Keki M. Mistry - - 17,00,000 20,00,000 37,00,000 1,68,320
Ms. Renu Sud Karnad - - 12,00,000 20,00,000 32,00,000 1,68,320
Mr. James Aird1 - - - - - -
Mr. Rushad Abadan - - - - - -
Mr. Dhruv Kaji - - 20,00,000 20,00,000 40,00,000 -
Mr. Jairaj Purandare - - 20,00,000 20,00,000 40,00,000 -
Mr. Sanjay Bhandarkar - - 22,00,000 20,00,000 42,00,000 -
Mr. Parag Shah - - 12,00,000 20,00,000 32,00,000 -
Ms. Roshni Nadar Malhotra - - 7,00,000 20,00,000 27,00,000 -
Mr. Shashi Kant Sharma - - 15,00,000 20,00,000 35,00,000 -
#
Mr. Navneet Munot 4,13,51,196 3,32,180 - 3,20,00,000 7,36,83,376 -
Notes:
Ceased to be director w.e.f. the close of business hours of October 25, 2021
1
* The Commission for the financial year ended March 31, 2022 will be paid to Non-Executive and Independent Directors, subject to deduction of tax,
after adoption of financial statements at the ensuing AGM.
# E xpenses towards gratuity and leave encashment provisions are determined actuarially on an overall basis at the end of each year and accordingly,
have not been considered in the above information.
No directors were granted employee stock options during the FY 2021-22 and no stock option were exercised by them during the said financial year.

Evaluation criteria for Board/Committees were on the 3. Consider and resolve the grievances of the security
parameters like attendance, participation and ability to holders of the Company including complaints related to
contribute at the meeting, Board as a whole i.e. its structure, transfer of shares, non-receipt of annual report and non-
diversity, experience, functioning, Board members’ receipt of declared dividends.
understanding of their roles and responsibilities, quality of
4. Review the measures taken for effective exercise of
decision making of the Board and its effectiveness.
voting rights by shareholders.
All the directors participated in the board evaluation and
5.
Review adherence to the service standards adopted
reviewed exercise including the peer evaluations excluding
by the Company in respect of various services being
the director being evaluated. The directors provided
rendered by the Registrar & Share Transfer Agent.
recommendations and suggestions for enhancing the
conduct of the meetings, devotion of board time for strategic 6. Review various measures and initiatives taken by the
discussions, ability to contribute for addressing business Company for reducing the quantum of unclaimed
challenges and risk. dividends and ensuring timely receipt of dividend
warrants/annual reports/statutory notices by the
At separate meetings of the Nomination & Remuneration
shareholders of the Company.
Committee, Independent Directors meeting and Board
meeting, responses of the Board evaluation questionnaire
were reviewed, discussed and the suggestions provided by the
Compliance Officer
directors were noted. The recommendations and suggestions Ms. Sylvia Furtado, Company Secretary of the Company is the
of the Board evaluation were shared with the Management of Compliance Officer for the purpose of Listing Regulations.
the Company for implementing them. There were no investor complaints at the beginning of the
The Board noted the evaluation results and were satisfied financial year. During the year under review, the Company
with the overall engagement and effectiveness of the Board received 4 complaints from shareholders/ SEBI/ Stock
and its various Committees. Exchanges/ MCA. There was 1 complaint pending as on
March 31, 2022. The Complaints were redressed to the
Stakeholders Relationship Committee satisfaction of the shareholder. There were no transfer
requests received by the Company during the year.
During FY 21-22, four (4) Stakeholders Relationship
Committee meetings were held on April 27, 2021; July 16,
2021; October 25, 2021 and January 24, 2022.
Corporate Social Responsibility Committee
During FY 21-22, two (2) Corporate Social Responsibility
Composition of the Committee and attendance of the (CSR) Committee meetings were held on July 16, 2021 and
members in meetings December 23, 2021.
Number of meetings
Name of the Director Composition of the Committee and attendance of the
Held during tenure Attended members in meetings
Ms. Renu Sud Karnad 4 3
(Chairperson) Number of meetings
Mr. Deepak S. Parekh 4 4
Mr. Deepak S. Parekh (Chairman) 2 1
Mr. Dhruv Kaji 4 4
Mr. Navneet Munot 2 2
Mr. James Aird1 3 2
Mr. Parag Shah 2 2
Mr. Jairaj Purandare 4 4
Mr. Sanjay Bhandarkar 4 4 The CSR Committee is responsible for formulating the
1
r. James Aird ceased to be Non-Executive Director of the Company
M Corporate Social Responsibility Policy, recommending the
w.e.f. the close of business hours of October 25, 2021. amount of expenditure to be incurred on CSR activities,
and reviewing and approving projects/programmes to be
The Stakeholders Relationship Committee is responsible supported by your Company.
broadly to: For details of CSR activities, refer to the Directors’ Report.
1.
Review the activities carried out by the investor
service centres of the Company and their adherence to Risk Management Committee
service standards. The Company has constituted the Risk Management
Committee in line with the Listing Regulations, which looks
2. Review the steps taken by the Company to redress the
into various areas of risk management and internal controls
grievances of the investors and the cases, if any, pending
pertaining to Mutual Fund and the Company.
before the Courts/ Forums/ Regulatory Authorities
against the Company/Mutual Fund.

During the year, five (5) Risk Management Committee 3. To monitor and oversee implementation of the risk
meetings were held on April 27, 2021; July 16, 2021; October management policy, including evaluating the adequacy
25, 2021; January 24, 2022 and March 29, 2022. of risk management systems;
4.
To review the appointment, removal and terms of
Composition of the Committee and attendance of the
remuneration of the Chief Risk Officer (if any) including
members in meetings
any other officer(s) to be appointed from time to time as
Number of meetings mandated by SEBI;
5. To evaluate procedures for ensuring adherence to the
Mr. Deepak S. Parekh (Chairman) 5 4
SEBI Risk Management Circular, 2002 for Mutual Funds or
Mr. James Aird1 3 2
any amendment thereto;
Mr. Keki M. Mistry 5 5
Ms. Renu Sud Karnad 5 4 6. To do all such acts as are required in terms of provisions
Mr. Sanjay Bhandarkar 5 5 of SEBI Circular no. SEBI/HO/IMD/IMD-1 DOF2/P/
Mr. Shashi Kant Sharma 5 4 CIR/2021/630 dated September 27, 2021, amendments
thereto and any communication issued in this regard by
1
r. James Aird ceased to be Non-Executive Director of the Company
M
w.e.f. the close of business hours of October 25, 2021.
SEBI/AMFI;
7. To implement the Risk Management framework for
The broad terms of reference of the Risk Management the Company as and when mandated under the SEBI
Committee include: (Mutual Fund) Regulations, 1996 or any other applicable
provisions of SEBI (Listing Obligations & Disclosure
1. To review risk management policy, if formulated and
Requirements) Regulations, 2015;
review it periodically;
8. To review the Cyber security risk and business continuity
2.
To ensure that appropriate methodology, processes
plan of the Company;
and systems are in place to monitor and evaluate risks
associated with the business of the Company; 9. Any other responsibilities or assignments provided by
the Board of Directors from time to time.
The minutes of meetings of all the Committees of the Board of
Directors were placed before the Board.
General Body Meetings
The Company held its last three Annual General Meetings as under:
Nature of Meeting Date Time Venue Special Resolution passed

22nd Annual July 16, 2021 3.00 p.m. Through Video
General Meeting Conferencing / Other -
Audio Visual means
21st Annual July 23, 2020 2.30 p.m. Through Video (1) Approval for issuance of equity shares under Employees
General Meeting Conferencing / Other Stock Option Scheme – 2020 to the employees and
Audio Visual means Directors of the Company
20th Annual July 16, 2019 3.00 p.m. “Birla Matushri Sabhagar”, (1) Approval for continuing the directorship of Mr. Deepak S.
General Meeting 19, New Marine Lines, Parekh as Non-Executive Director
Mumbai 400 020 (2) Approval for Re-appointment of Mr. Hoshang Billimoria
as an Independent Director
(3) Approval and Ratification of Article Nos. 127, 149 and
156(3) of Articles of Association of the Company
Postal Ballot and the Navshakti (Marathi) newspaper. The results

During the year, no special resolution was passed through are also available on the website of the Company at
postal ballot. There is no special resolution proposed to be www.hdfcfund.com.
conducted through postal ballot. News Releases and Presentations: News releases are first
sent to the stock exchanges before their release to media
Means of Communication for wider dissemination. Presentation made to Investors/
Quarterly/Half-yearly/Annual Results: The Quarterly Analysts, Media, Institutional Investors, etc. are available on
Results of your Company are published in the Business the website of stock exchanges where the shares of
Standard, a national English daily with a wide circulation, the Company are listed (BSE and NSE) as well as on the
Company’s website.

Website: The Company’s website contains a separate section, approval and reporting of the concerned transactions
AMC Shareholder where the latest shareholder information is between the Company and related parties. The Policy can
available. It contains comprehensive information which is of be accessed at https://www.hdfcfund.com/about-us/
interest to the shareholders including the financial results, governance/codes-policies.
Annual Reports, information disclosed to Stock Exchange,
policies of the Company, etc. Non-compliance/Penalties/Strictures Imposed
No penalties or strictures were imposed on the Company
Annual Report: The Annual Report containing Notice of the
by the stock exchanges or SEBI, or any statutory authority
Annual General Meeting, Audited Annual Accounts, Directors’
on any matter related to the capital markets during the last
Report, Corporate Governance Report, Auditors’ Report
three years.
and other important information is circulated to members
and others entitled thereto. The Management Discussion It may be noted that the Company receives administrative
and Analysis (MDA) Report and Business Responsibility and warnings/deficiency letters in the regular course of its
Sustainability Report form part of the Annual Report. The business pertaining to Mutual Funds / Portfolio Management
Annual Report is also available on the Company’s website. Services pursuant to regulatory inspections conducted by
SEBI from time to time. Necessary corrective actions in this
NSE Electronic Application Processing System (NEAPS),
regard are taken by the Company.
NSE’s Digital Portal and BSE Listing Centre: The NSE and
the BSE have developed web-based applications, NEAPS Further, SEBI issued show cause notices in May and June
and BSE Listing Centre for corporates to electronically file 2019 to the Company, HDFC Trustee Company Limited
compliances such as financial results, shareholding pattern (Trustee Company) and certain officials of the Company for
and corporate governance report etc. Further, in order to alleged violations of SEBI (Mutual Funds) Regulations, 1996
enhance customer experience and operational excellence, (“MF Regulations”) in the matter of four schemes of HDFC
NSE, during the year, has launched Digital Portal, wherein Mutual Fund, i.e. Fixed Maturity Plans (FMPs) holding debt
listed entities are required to file Equity announcements and instruments of Essel Group Companies. Separate Settlement
disclosures under SEBI Takeovers Regulations. applications were filed with SEBI under SEBI (Settlement
Proceedings) Regulations, 2018 by the Company, Officials
SEBI Complaints Redress System (SCORES): Shareholders
of the AMC and the Trustee Company against the
complaints are also processed through a centralised web-
enforcement actions/proceedings initiated through the
based complaint redressal system, SCORES. This system
show cause notices issued by SEBI, without admission or
enables the Company to have a centralised database of the
denial of guilt. SEBI issued Settlement Order no. SO/EFD-
complaints and upload online action taken reports. Investors
2/SD/337/April/2020 dated April 16, 2020 in this regard
can also view the current status of and actions taken on
whereby the enforcement action and enforcement
their complaints.
proceedings had been disposed of against the Company,
Web-based Query Redressal System: Members may utilise Officials of the Company and Trustee Company.
the facility extended by the Registrar and Share Transfer
Agent for redressal of queries, by visiting https://ris.kfintech. Whistle Blower Policy/Vigil Mechanism
com/clientservices/isc and clicking on ‘Post a Query’ option This Policy has been formulated for Directors and employees
for query registration through an identity registration to report concerns about unethical behaviour, actual or
process. Investors can submit their query provided on the suspected fraud or violation of the Company’s Code of
above website, that would generate the query registration Business Conduct and Ethics Policy. The Company has
number. For accessing the status/response to the query adopted a third party web-based reporting tool which
submitted, the query registration number can be used at the provides a secure and confidential platform to report
option ‘VIEW REPLY’ after 24 hours. Investors can continue genuine concerns and can be accessed by all employees/
to put an additional query, if any, relating to the grievance till Directors/ stakeholders for lodging a complaint or expressing
they get a satisfactory reply. genuine concerns.
Disclosures During the year, no person was denied access to the

Audit Committee for expressing their concerns or reporting
Related Party Transactions grievances under the Whistle Blower Policy and/or
During the FY 21-22, the Company has not entered into any vigil mechanism.
materially significant related party transactions that may
The Policy is available at https://www.hdfcfund.com/about-
have potential conflict with the interest of the Company at
us/governance/codes-policies.
large. Transactions with related parties are disclosed in notes
to financial statements. Code for Prevention of Insider Trading
During the year the Company has revised its Related Party AMC Share Dealing Code (“Code”) provides a framework which
Transactions Policy to bring it in line with the amendments deals with the internal procedures and conduct in dealing with
made by SEBI in Listing Regulations. The said Policy is the securities of the Company. The Code has been formulated
effective from April 1, 2022. The Policy ensures proper in compliance with SEBI (Prohibition of Insider Trading)
Regulations, 2015.
Pursuant to the above, the Company has put in place Fees Paid to Statutory Auditor
adequate and effective system of internal controls to
Details of fees paid to the statutory auditor, BSR and Co. LLP
ensure compliance with the requirements of SEBI
and all entities in the network firm/network entity of which
(Prohibition of Insider Trading) Regulations, 2015.
the statutory auditor is a part, for all services taken by your
Company during FY 21-22 are as under:
Compliance with Mandatory and Adoption of Non-
Mandatory Requirements (` in Crore)
Your Company has complied with all the mandatory corporate Particulars Amount
governance requirements under the Listing Regulations. Audit Fees 0.26
Specifically your Company confirms compliance with Tax audit fee 0.04
Corporate Governance requirements specified in Regulations Taxation Matters 0.19
17 to 27 and clauses (b) to (i) of sub-regulation (2) of regulation Reimbursement of Expenses 0.01
46 of the Listing Regulations.
Limited Review Fees 0.15
M/s. Bhandari & Associates, Practicing Company Secretaries, Other Services 0.27
have certified that your Company has complied with the Total 0.92
mandatory requirements as stipulated under the Listing
Regulations. The certificate forms part of this Report. Notes:
Your Company has also obtained a certificate from 1) The above amount includes amount accrued as payable at the year end.
M/s. Bhandari & Associates, Practicing Company Secretaries, 2) The above details have been compiled based on the list of entities
confirming that none of the Directors on the Board of your provided by the statutory auditors.
Company have been debarred or disqualified from being
appointed or continuing as directors of companies by SEBI/
Ministry of Corporate Affairs or any such statutory authority. Sexual Harassment at Workplace
The said certificate forms part of this Report. Your Company has zero tolerance for sexual harassment at
workplace and is compliant with provisions relating to the
Your Company has fulfilled the following non-mandatory
constitution of Internal Complaints Committee under the
requirements as prescribed in Part E of Schedule II Regulation
Sexual Harassment of Women at Workplace (Prevention,
27(1) of Listing Regulations.
Prohibition and Redressal) Act, 2013 (POSH).
Modified Opinion(s) in Audit Report During the year, the Internal Complaints Committee received
Your Company’s financial statements have unmodified one complaint pertaining to sexual harassment and the same
audit opinions. was disposed of within the prescribed timeline in compliance
with the spirit and provisions of the POSH.
Separate posts of Chairperson and the Managing Director
or the Chief Executive Officer Code of Conduct
Your Company has appointed separate persons to the post of Your Company has adopted a Code of Conduct for all
the Chairperson and the Managing Director. employees including the members of the Board and Senior
Management Personnel. All members of the Board and Senior
Reporting of Internal Auditor Management Personnel have affirmed compliance with the
said Code of Conduct for FY 21-22.
The Internal Auditor reports directly to the Audit Committee.
The declaration to this effect signed by Mr. Navneet Munot,
Material Subsidiary Managing Director (MD) & CEO of the Company forms part of
In accordance with Regulation 16(1)(c) of the Listing this Report.
Regulations, your Company has formulated Policy for
Determining Material Subsidiary which is available at https:// MD/CFO Certification
www.hdfcfund.com/about-us/governances/codes-policies. Necessary certification has been issued by Mr. Navneet
Your Company does not have any subsidiary as on date. Munot, MD & CEO and Mr. Naozad Sirwalla, CFO to the Board
in terms of Schedule II Part B of the Listing Regulations. A copy
Commodity Price Risk or Foreign Exchange Risk and of this certificate forms part of this Report.
Hedging Activities
As such, your Company is not exposed to any commodity Demat Suspense Account/Unclaimed Suspense Account
price or material foreign exchange risk and hence the The Company does not have any equity shares lying in
disclosure under Clause 9(n) of Part C of Schedule V of the Demat suspense account/unclaimed suspense account.
Listing Regulations, in terms of the format prescribed vide
SEBI circular dated November 15, 2018, is not applicable.

General Shareholder Information:

23rd Annual General Meeting
Day/Date : Wednesday, June 29, 2022

Time : 03:00 p.m.
Venue
: Annual General Meeting through Video Conferencing/ Other Audio
Visual Means (VC/OAVM facility)
[Deemed Venue for Meeting: Registered Office: “HDFC House”,
2nd Floor, H.T. Parekh Marg, 165-166, Backbay Reclamation,
Churchgate, Mumbai-400 020]
Financial Year : April 1, 2021 to March 31, 2022
Book Closure Dates : June 11, 2022 to June 29, 2022 (both days inclusive)
Dividend
Dividend Distribution Policy:
The Company ensures that an appropriate balance is maintained between adequately rewarding the shareholders and ensuring
that adequate financial resources are available to fuel the growth aspirations of the Company. Company’s Dividend Distribution
Policy specifies the financial parameters that will be considered when declaring dividends, internal and external factors for
declaring dividends and the circumstances under which shareholders can or cannot expect a dividend. The Policy is available on
the website of the Company at https://www.hdfcfund.com/about-us/governance/codes-policies.
Dividend Payment Date:

The Board of Directors at its meeting held on April 27, 2022 has recommended dividend of ` 42/- [Rupees Forty - Two only] per
equity share of ` 5/- each for the financial year 2021-22, subject to approval by shareholders. The dividend payment date shall
be June 30, 2022 onwards.
Unclaimed Dividend
The details of the last date for claiming the unclaimed dividends from the Company, prior to transfer to IEPF are as under:
Financial Year Date of payment Last date to claim from the Company prior to transfer to IEPF
Interim dividend 2018-19 March 12, 2019 March 29, 2026
Final dividend 2018-19 July 17, 2019 August 18, 2026
Dividend 2019-20 July 24, 2020 August 26, 2027
Dividend 2020-21 July 17, 2021 August 18, 2028
E-voting Period
Starts: Saturday, June 25, 2022 at 10.00 a.m. (IST)
Ends: Tuesday, June 28, 2022 at 05.00 p.m. (IST)
Cut-off date for e-voting: Wednesday, June 22, 2022. Shareholders holding shares as on cut-off date shall be eligible to vote
either through remote e-voting or during the AGM.

Listing Details
Name of Stock Exchange Stock Code
BSE Limited (BSE) 541729
Phiroze Jeejeebhoy Towers,
Dalal Street,
Mumbai 400 001.
National Stock Exchange of India Limited (NSE) HDFCAMC
Exchange Plaza, Plot No. C-1, Block G,
Bandra Kurla Complex,
Bandra (E), Mumbai 400 051.
ISIN for Depositories – INE127D01025

The Company has paid listing fees at both the exchanges and has complied with the listing requirements.
Share Price data

The monthly high and low prices and volume of the shares traded on BSE Limited (BSE) and the National Stock Exchange of India
Limited (NSE) for the financial year ended March 31, 2022 are as under:
BSE Limited National Stock Exchange of India Limited
Months No. of No. of
High Low High Low
Shares Traded Shares Traded
April 2021 3,050 2,758.15 305,523 3,050.10 2,756 51,49,835
May 2021 3,012 2,700 412,124 3,012 2,699.65 52,79,359
June 2021 3,135 2,909.25 342,259 3,134 2,908.05 47,87,814
July 2021 3,289.25 2,811.2 610,436 3,289 2,810.05 91,50,564
August 2021 3,092.85 2,835 352,834 3,093 2,833.15 57,29,773
September 2021 3,363 2,871.05 1,29,86,735 3,365 2,875.65 1,63,09,642
October 2021 2,986 2,600.45 643,707 2,979 2,600.10 89,41,252
November 2021 2,698.55 2,427.1 337,527 2,699 2,425.20 57,52,388
December 2021 2,634.7 2,281 347,018 2,621.50 2,280 64,59,265
January 2022 2,535.25 2,119.45 432,560 2,538 2,118 67,40,411
February 2022 2,332.5 2,011 341,371 2,333.05 2,010 57,43,439
March 2022 2,269.4 1,988 576,999 2,255.75 1,987.85 71,08,745
Source: BSE and NSE Website

Stock Performance in comparison to broad-based indices

The charts below show the comparison of the Company’s share price movement on NSE and BSE vis-à-vis the movement of the
NSE Nifty 50 and S&P BSE Sensex indices respectively, for the financial year ended March 31, 2022:
HDFC AMC – NSE Vs NSE NIFTY 50

(`) (Index)
3,500 20,000
18,000
3,000
16,000
2,500 14,000
2,000 12,000
10,000
1,500
8,000
1,000 6,000
4,000
500
2,000
0 0
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
HDFC AMC – NSE (`) NSE NIFTY 50 (Index)
HDFC AMC – BSE Vs S&P BSE SENSEX

(`) (Index)
3,500 70,000
3,000 60,000
2,500 50,000
2,000 40,000
1,500 30,000
1,000 20,000
500 10,000
0 0
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
HDFC AMC – BSE (`) S&P BSE SENSEX (Index)
Sources: BSE and NSE Website

The Equity Shares of the Company were not suspended from trading as on March 31, 2022.
Registrar and Share Transfer Agent (RTA):
KFin Technologies Limited
(Formerly known as KFin Technologies Private Limited)
Selenium Tower B, Plot 31-32,
Financial District, Nanakramguda,
Serilingampally Mandal,
Hyderabad – 500 032, Telangana.
Website: https://www.kfintech.com and / or https://ris.kfintech.com/
E-mail: einward.ris@kfintech.com
Toll Free no.: 1- 800-309-4001
For any assistance regarding dematerialization of shares, share transfers, transmissions, change of address, registration of
e-mail id, non-receipt of dividend or any other query relating to shares, please write to our RTA at aforesaid address.
Members are requested to note that, KFintech has launched a mobile application - KPRISM and a website https://kprism.
kfintech.com/ for our members. Now Members can download the mobile app and see portfolios serviced by KFINTECH. Check
Dividend status, request for annual reports, change of address, change / update Bank mandate and download standard forms.
The android mobile application can be downloaded from Play Store by searching for “KPRISM”.
The e-mail ID, shareholders.relations@hdfcfund.com, has been created for redressal of investor complaints and the same is
disclosed on the Company’s website.
Share Transfer System

The Company’s share transfer and related operations is operated through its Registrar and Share Transfer Agent (RTA) – KFin
Technologies Limited.
Shareholders may please note that SEBI vide its Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8 dated January
25, 2022 has mandated the Listed Companies to issue securities in demat form only while processing service requests viz.
Issue of duplicate securities certificate, claim from Unclaimed Suspense Account; Renewal/ Exchange of securities certificate;
Endorsement; Sub-division/ Splitting of securities certificate; Consolidation of securities certificates/folios; Transmission and
Transposition. Accordingly, the shareholders are requested to make service requests by submitting a duly filled and signed Form
ISR – 4, the format of which is available on the Company’s website under the link at https://www.hdfcfund.com/information/
forms-physical-shareholders. Further, the Company has sent individual letters to the respective Shareholders holding shares
of the Company in physical form for furnishing their PAN, KYC details and Nomination pursuant to the SEBI Circular No. SEBI/
HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated November 3, 2021.
Shareholders holding equity shares of the Company in physical form are requested to kindly get their equity shares converted
into demat/ electronic form to get inherent benefits of dematerialisation and also considering that physical transfer of equity
shares/ issuance of equity shares in physical form have been disallowed by SEBI.
Category wise Shareholding pattern as on March 31, 2022

Category of Shareholders Number of Shares % of Total Shares
Promoter 11,21,79,830 52.60
Individuals (includes HUFs) 2,23,12,672 10.46
FIIs/ QFIs/ FPIs 5,68,11,460 26.65
Mutual Funds 16,17,389 0.76
Financial institutions/Banks 11,32,614 0.53
Bodies corporate 10,76,717 0.50
NRIs/foreign nationals 8,66,310 0.41
Directors & their Relatives 4,98,636 0.23
Clearing members 2,68,214 0.13
Alternative Investment Funds 7,728 0.00
Qualified Institutional Buyer 1,64,70,263 7.72
NBFC 2,579 0.00
Trusts 34,129 0.01
Overseas Corporate Bodies 11 0.00
Total 21,32,78,552 100

Distribution of Shareholding as on March 31, 2022

Sr.
Category (Shares) No. of Holders % to Holders No. of Shares % to Equity
No.
1 1 - 5,000 5,92,528 99.90 1,87,93,071 8.81
2 5,001 - 10,000 208 0.04 14,64,371 0.69
3 1,0001 - 20,000 128 0.02 18,46,799 0.87
4 20,001 - 30,000 46 0.01 11,11,164 0.52
5 30,001 - 40,000 47 0.01 16,56,922 0.78
6 40,001 - 50,000 25 0.00 11,34,239 0.53
7 50,001 - 1,00,000 66 0.01 47,94,331 2.25
8 1,00,001 & Above 65 0.01 18,24,77,655 85.55
Total 5,93,113 100 21,32,78,552 100
Dematerialization of Shares and Liquidity as on March 31, 2022

Equity Shares of ` 5/- each
Particulars of Equity Holding
Number % of Total
Dematerialised form
NSDL 20,48,26,413 96.04
CDSL 84,52,096 3.96
Sub-total 21,32,78,509 100
Physical form 43 0
Total 21,32,78,552 100
Outstanding GDRs / ADRs/ Warrants or any convertible instruments

There are no outstanding GDRs / ADRs / Warrants or any convertible instruments as on March 31, 2022.
Plant Locations
The Company is engaged in the business of financial services and has no such plants, however we serve our customers and
distribution partners in over 200 cities through our network of 228 Investor Service Centres (ISCs).
Address for Correspondence with the Company

HDFC Asset Management Company Limited
CIN: L65991MH1999PLC123027
Registered Address: “HDFC House”, 2nd Floor,
H. T. Parekh Marg, 165-166, Backbay Reclamation,
Churchgate, Mumbai – 400020.
Tel.: 022 – 66316333 Fax: 022 – 66580203
Website: www.hdfcfund.com
E-mail: shareholders.relations@hdfcfund.com
List of all credit ratings obtained by the entity along with any revisions thereto during the relevant financial year, for all debt
instruments of such entity or any fixed deposit programme or any scheme or proposal of the listed entity involving mobilization
of funds, whether in India or abroad. – Not Applicable.

Declaration by the Managing Director

& Chief Executive Officer
[Regulation 34(3) read with Schedule V (Part D) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015]
To the Members of
I, Navneet Munot, Managing Director & Chief Executive Officer of HDFC Asset Management Company Limited, hereby confirm
that all the members of the Board of Directors and Senior Management have affirmed compliance with the Code of Conduct of
the Board of Directors and Senior Management of the Company.
Navneet Munot
Managing Director & Chief Executive Officer
Place: Mumbai
Date: April 27, 2022
MD / CFO Certificate
The Board of Directors
HDFC House, H. T. Parekh Marg,
165-166, Backbay Reclamation,
Churchgate, Mumbai 400020.
Sub: Regulation 17(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Dear Sir(s)/ Madam(s),
This is to confirm and certify that –
1. We have reviewed financial statements and the cash flow statement for the year ended March 31, 2022 and that:
i. These statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
ii. These statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
2. To the best of our knowledge and belief, there are no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the Company’s code of conduct.
3. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated
the effectiveness of internal control systems of the Company pertaining to financial reporting and have disclosed to the
auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are
aware and the steps taken or propose to take to rectify these deficiencies.
4. We have indicated to the auditors and the Audit committee
i. Significant changes in internal control over financial reporting during the year;
ii. Significant changes in accounting policies during the year and that the same have been disclosed in the notes to the
financial statements; and
iii. Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or an employee having a significant role in the Company’s internal control system over financial reporting.
Naozad Sirwalla Navneet Munot

Chief Financial Officer Managing Director & Chief Executive Officer
Place: Mumbai
Date: April 27, 2022

Practicing Company Secretaries’ Certificate on Corporate Governance
Bhandari & Associates

Company Secretaries
901, Kamla Executive Park, Off. Andheri Kurla Road,
J. B. Nagar, Andheri East. Mumbai - 400 059
Tel: +91 22 4221 5300 Fax: +91 22 4221 5303
Email: bhandariandassociates@gmail.com / mumbai@anilashok.com
To,
The Members of
We have examined the compliance of conditions of Corporate Governance by HDFC Asset Management Company Limited
(“the Company”) for the financial year ended March 31, 2022 as stipulated in chapter IV of The Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 [“Listing Regulations”].
The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited
to procedures and implementation thereof, adopted by the Company for ensuring compliance with the conditions of Corporate
Governance. It is neither an audit nor an expression of opinion on the Financial Statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has
complied with the conditions of Corporate Governance as specified in chapter IV of the Listing Regulations.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the Management has conducted the affairs of the Company.
Company Secretaries
Firm Registration No: P1981MH043700
S. N. Bhandari
Partner
FCS No.: 761; C P No.: 366
Mumbai: April 27, 2022
UDIN: F000761D000213811

Bhandari & Associates

Company Secretaries
901, Kamla Executive Park, Off. Andheri Kurla Road,
J. B. Nagar, Andheri East. Mumbai - 400 059
Tel: +91 22 4221 5300 Fax: +91 22 4221 5303
Email: bhandariandassociates@gmail.com / mumbai@anilashok.com
Certificate of Non-Disqualification of Directors

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015)
To,
The Members of
HDFC Asset Management Company Limited.
“HDFC House”, 2nd Floor,
H.T Parekh Marg,
165-166, Backbay Reclamation,
Churchgate, Mumbai – 400020
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of HDFC Asset
Management Company Limited, having CIN L65991MH1999PLC123027 and having registered office at “HDFC House”,
2nd Floor, H.T Parekh Marg, 165-166, Backbay Reclamation, Churchgate. Mumbai – 400020 (hereinafter referred to as ‘the
Company’), produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3)
read with Schedule V Para-C sub clause 10(i) of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015. In our opinion and to the best of our information and according to the verifications (including
Directors Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished
to us by the Company & its officers,
We hereby certify that none of the Directors on the Board of the Company as stated below for the financial year ended on March
31, 2022 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and
Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.
Sr. No. Name of Director DIN Date of appointment
1. Mr. Deepak S. Parekh 00009078 04/07/2000
2. Mr. Keki M. Mistry 00008886 24/12/2007
3. Ms. Renu Sud Karnad 00008064 04/07/2000
4. Ms. Roshni Nadar Malhotra 02346621 27/04/2019
5. Mr. Jairaj Purandare 00159886 31/10/2018
6. Mr. Dhruv Subodh Kaji 00192559 31/10/2018
7. Mr. Parag Shah 00374944 22/01/2019
8. Mr. Shashi Kant Sharma 03281847 26/10/2019
9. Mr. Sanjay Bhandarkar 01260274 31/10/2018
10. Mr. Rushad Abadan 08035538 21/01/2021
11. Mr. Navneet Munot 05247228 16/02/2021
Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of
the Company. Our responsibility is to express an opinion based on our verification. This certificate is neither an assurance as to
the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs
of the Company.
Company Secretaries
Firm Registration No: P1981MH043700
S. N. Bhandari
Partner
FCS No: 761; C P No.: 366
Mumbai: April 27, 2022
UDIN: F000761D000213688

Independent Auditor’s Report
To the Members of HDFC Asset Management Basis for Opinion

Company Limited We conducted our audit of Financial Statements in accordance
with the Standards on Auditing (SAs) specified under Section
Report on the Audit of the Financial Statements 143(10) of the Act. Our responsibilities under those SAs are
further described in the Auditor’s Responsibilities for the
Opinion Audit of the Financial Statements section of our report. We
We have audited the financial statements of HDFC Asset are independent of the Company in accordance with the Code
Management Company Limited (the “Company”), which of Ethics issued by the Institute of Chartered Accountants of
comprise the Balance Sheet as at March 31, 2022, the India together with the ethical requirements that are relevant
Statement of Profit and Loss (including Other Comprehensive to our audit of the financial statements under the provisions
Income), Statement of Changes in Equity and Statement of of the Act and the Rules thereunder, and we have fulfilled
Cash Flows for the year then ended, and notes to the financial our other ethical responsibilities in accordance with these
statements, including a summary of significant accounting requirements and the Code of Ethics. We believe that the
policies and other explanatory information. audit evidence obtained by us is sufficient and appropriate to
In our opinion and to the best of our information and according provide a basis for our opinion on the financial statements.
to the explanations given to us, the aforesaid financial
statements give the information required by the Companies Key Audit Matters
Act, 2013 (“Act”), as amended from time to time, in the Key audit matters are those matters that, in our professional
manner so required and give a true and fair view in conformity judgement, were of most significance in our audit of the
with the accounting principles generally accepted in India, of financial statements of the current year. These matters
the state of affairs of the Company as at March 31, 2022, and were addressed in the context of our audit of the financial
its profit and other comprehensive income, changes in equity statements as a whole, and in forming our opinion thereon,
and its cash flows for the year ended on that date. and we do not provide a separate opinion on these matters.
Description of Key Audit Matter

Revenue Recognition: Investment Management Fee
Refer to the Significant Accounting Policy note 3.5 and note 19 to the financial statements – Revenue from operations
The key audit matter How the matter was addressed in our audit
− Investment Management Fee is the most significant In view of the significance of the matter we applied the
account balance in the Statement of Profit and Loss. following audit procedures in this area, among others to obtain
Investment management fees from the Mutual fund sufficient appropriate audit evidence:
consists of fees from various schemes which invest in
Testing of Design and Operating Effectiveness of controls
different categories of securities like Equity, Debt etc.
• Understood and evaluated the design and implementation
We have identified revenue from investment management of management review controls and other key controls
fees as a key audit matter since: relating to recognition of investment management fee;
• The calculation of investment management fees is a • Test checked the operating effectiveness of management
percentage of the assets under management (‘AUM’) review controls, and other key controls over recognition of
managed by the Company. There is a process of manual investment management fee.
inputting of approved fee rate used for computation of Substantive tests
Investment Management Fee income. AUM calculation is
automatically done in the system. • Evaluated the appropriateness of revenue recognition in
respect of investment management fee income based on
• Multiple schemes of HDFC Mutual Fund require effective the requirements of Ind AS 115;
monitoring over key financial terms and conditions being
captured and applied accurately. Any discrepancy in such
computations could result in misstatement of investment
management fee recognised in the financial statements.

FINANCIAL STATEMENTS INDEPENDENT AUDITOR’S REPORT
The key audit matter How the matter was addressed in our audit
• Obtained and tested arithmetical accuracy of investment
management fee calculations and reconciled investment
management fee to amounts included in financial
statements for completeness of income recognition;
• Test checked that investment management fee rates were
approved by authorised personnel;
• Obtained and read the investment management fee
certification reports, issued by the statutory auditors
of mutual fund schemes, in accordance with generally
accepted assurance standards for such work and reconciled
the certified amounts with the accounting records;
• Test checked the investment management fee invoices and
reconciled with the accounting records;
• Test checked the receipts of money of Investment
Management fee income in the bank statements;
• Evaluated the adequacy of disclosures relating to the
investment management fee earned by the Company.
Information Other than the Financial Statements other irregularities; selection and application of appropriate
and Auditor’s Report Thereon accounting policies; making judgements and estimates that
The Company’s Management and Board of Directors are are reasonable and prudent; and design, implementation
responsible for the other information. The other information and maintenance of adequate internal financial controls that
comprises the information included in the Company’s Annual were operating effectively for ensuring the accuracy and
Report, but does not include the financial statements and our completeness of the accounting records, relevant to the
auditor’s report thereon. The other information is expected to preparation and presentation of the financial statements
be made available to us after the date of this auditor’s report. that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Our opinion on the financial statements does not cover
the other information and we do not express any form of In preparing the financial statements, the Management
assurance conclusion thereon. and Board of Directors are responsible for assessing the
Company’s ability to continue as a going concern, disclosing,
In connection with our audit of the financial statements, our as applicable, matters related to going concern and using
responsibility is to read the other information identified above the going concern basis of accounting unless the Board of
when it becomes available and, in doing so, consider whether Directors either intends to liquidate the Company or to cease
the other information is materially inconsistent with the operations, or has no realistic alternative but to do so.
financial statements or our knowledge obtained in the audit
or otherwise appears to be materially misstated. The Board of Directors is also responsible for overseeing the
Company’s financial reporting process.
Management’s and Board of Directors’
Responsibilities for the Financial Statements Auditor’s Responsibilities for the Audit of the
Financial Statements
The Company’s Management and Board of Directors are
responsible for the matters stated in Section 134(5) of the Act Our objectives are to obtain reasonable assurance about
with respect to the preparation of these financial statements whether the financial statements as a whole are free from
that give a true and fair view of the state of affairs, profit/ material misstatement, whether due to fraud or error, and to
loss and other comprehensive income, changes in equity issue an auditor’s report that includes our opinion. Reasonable
and cash flows of the Company in accordance with the assurance is a high level of assurance, but is not a guarantee
accounting principles generally accepted in India, including that an audit conducted in accordance with SAs will always
the Indian Accounting Standards (Ind AS) specified under detect a material misstatement when it exists. Misstatements
Section 133 of the Act. This responsibility also includes can arise from fraud or error and are considered material if,
maintenance of adequate accounting records in accordance individually or in the aggregate, they could reasonably be
with the provisions of the Act for safeguarding of the assets expected to influence the economic decisions of users taken
of the Company and for preventing and detecting frauds and on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise We also provide those charged with governance with a
professional judgement and maintain professional skepticism statement that we have complied with relevant ethical
throughout the audit. We also: requirements regarding independence, and to communicate
with them all relationships and other matters that may
• Identify and assess the risks of material misstatement of
reasonably be thought to bear on our independence, and
the financial statements, whether due to fraud or error,
where applicable, related safeguards.
design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and From the matters communicated with those charged with
appropriate to provide a basis for our opinion. The risk governance, we determine those matters that were of most
of not detecting a material misstatement resulting from significance in the audit of the financial statements of the
fraud is higher than for one resulting from error, as fraud current period and are therefore the key audit matters. We
may involve collusion, forgery, intentional omissions, describe these matters in our auditor’s report unless law or
misrepresentations, or the override of internal control. regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
• Obtain an understanding of internal control relevant to
matter should not be communicated in our report because
the audit in order to design audit procedures that are
the adverse consequences of doing so would reasonably
appropriate in the circumstances. Under Section 143(3)
be expected to outweigh the public interest benefits of
(i) of the Act, we are also responsible for expressing our
such communication.
opinion on whether the Company has adequate internal
financial controls with reference to financial statements in
place and the operating effectiveness of such controls.
Report on Other Legal and Regulatory
Requirements
• Evaluate the appropriateness of accounting policies used 1. As required by the Companies (Auditor’s Report) Order,
and the reasonableness of accounting estimates and 2020 (“the Order”) issued by the Central Government of
related disclosures made by the Management and Board India in terms of Section 143 (11) of the Act, we give in
of Directors. the “Annexure A” a statement on the matters specified in
• Conclude on the appropriateness of the Management paragraphs 3 and 4 of the Order, to the extent applicable.
and Board of Directors use of the going concern basis of 2. (A)
As required by Section 143(3) of the Act, we
accounting in preparation of financial statements and, report that:
based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that a)
We have sought and obtained all the
may cast significant doubt on the Company’s ability to information and explanations which to the best
continue as a going concern. If we conclude that a material of our knowledge and belief were necessary
uncertainty exists, we are required to draw attention in our for the purposes of our audit.
auditor’s report to the related disclosures in the financial b) In our opinion, proper books of account as
statements or, if such disclosures are inadequate, to required by law have been kept by the Company
modify our opinion. Our conclusions are based on the audit so far as it appears from our examination of
evidence obtained up to the date of our auditor’s report. those books.
However, future events or conditions may cause the
Company to cease to continue as a going concern. c) The balance sheet, the statement of profit
and loss (including other comprehensive
• Evaluate the overall presentation, structure and content income), the statement of changes in equity
of the financial statements, including the disclosures, and and the statement of cash flows dealt with by
whether the financial statements represent the underlying this Report are in agreement with the books
transactions and events in a manner that achieves of account.
fair presentation.
d) In our opinion, the aforesaid financial
We communicate with those charged with governance statements comply with the Ind AS specified
regarding, among other matters, the planned scope and under Section 133 of the Act.
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify e) On the basis of the written representations
during our audit. received from the directors as on March
31, 2022 taken on record by the Board of
Directors, none of the directors is disqualified
as on March 31, 2022 from being appointed as
a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal including foreign entities (“Funding
financial controls with reference to financial Parties”), with the understanding,
statements of the Company and the operating whether recorded in writing or otherwise,
effectiveness of such controls, refer to our that the Company shall:
separate Report in “Annexure B”.
• directly or indirectly, lend or invest in
(B) With respect to the other matters to be included in other persons or entities identified in
the Auditor’s Report in accordance with Rule 11 of any manner whatsoever (“Ultimate
the Companies (Audit and Auditor’s) Rules, 2014, in Beneficiaries”) by or on behalf of the
our opinion and to the best of our information and Funding Party or
according to the explanations given to us:
• provide any guarantee, security or the
a)
The Company has disclosed the impact of like from or on behalf of the Ultimate
pending litigations as at March 31, 2022 on its Beneficiaries.]
financial position in its financial statements–
(iii)
Based on such audit procedures as
Refer Note 30 to the financial statements.
considered reasonable and appropriate
b)
The Company did not have any long-term in the circumstances, nothing has come
contracts including derivative contracts for to our notice that has caused us to
which there were any material foreseeable believe that the representations under
losses. sub-clause (d) (i) and (d) (ii) contain any
material misstatement.
c) There were no amounts which were required
to be transferred to the Investor Education e) The dividend declared or paid during the year
and Protection Fund by the Company. by the Company is in compliance with Section
123 of the Act.
d) (i) The management has represented that,
to the best of its knowledge and belief, (C) With respect to the matter to be included in the
no funds have been advanced or loaned Auditor’s Report under Section 197(16) of the Act:
or invested (either from borrowed funds
In our opinion and according to the information and
or share premium or any other sources
explanations given to us, the remuneration paid by
or kind of funds) by the Company to or in
the Company to its directors during the current year
any other persons or entities, including
is in accordance with the provisions of Section 197
foreign entities (“Intermediaries”), with
of the Act. The remuneration paid to any director
the understanding, whether recorded
is not in excess of the limit laid down under Section
in writing or otherwise, that the
197 of the Act. The Ministry of Corporate Affairs has
Intermediary shall:
not prescribed other details under Section 197(16)
• directly or indirectly lend or invest in of the Act which are required to be commented
other persons or entities identified in upon by us.
any manner whatsoever (“Ultimate
Beneficiaries”) by or on behalf of the For B S R & Co. LLP
Company or Chartered Accountants
• provide any guarantee, security Firm’s Registration No. 101248W/W-100022
or the like to or on behalf of the
Ultimate Beneficiaries. Kapil Goenka
(ii) The management has represented, that, Partner
to the best of its knowledge and belief, Place: Mumbai Membership No. 118189
no funds have been received by the Date: April 27, 2022 UDIN: 22118189AHWLOX6220
Company from any persons or entities,

Annexure A to the Independent Auditor’s Report

of even date on the Financial Statements of HDFC Asset Management Company Limited
(i) (a) (A) The Company has maintained proper records the records of the Company, the Company has not
showing full particulars, including quantitative been sanctioned working capital limits in excess
details and situation of Property, Plant of five crore rupees, in aggregate, from banks or
and Equipment. financial institutions on the basis of security of
current assets at any point of time of the year.
(B) The Company has maintained proper records
Accordingly, clause 3(ii)(b) of the Order is not
showing full particulars of intangible assets.
applicable to the Company.
(b)
According to the information and explanations
(iii) According to the information and explanations given to
given to us and on the basis of our examination of
us and on the basis of our examination of the records
the records of the Company, the Company has
of the Company, the Company has not provided any
a regular programme of physical verification of
guarantee or security or granted any loans or advances in
its Property, plant and equipment by which all
the nature of loans, secured or unsecured to companies,
Property, plant and equipment are verified every
firms, limited liability partnership or any other parties
year. In accordance with this programme, all
during the year. The Company has made investments in
property, plant and equipment were verified during
companies, in respect of which the requisite information
the year. In our opinion, this periodicity of physical
is as below. The Company has not made any investments
verification is reasonable having regard to the size
in firms, limited liability partnership or any other parties.
of the Company and the nature of its assets. No
material discrepancies noticed on such verification. According to the information and explanations given
to us and based on the audit procedures conducted
(c)
by us, in our opinion the investments made during the
given to us and on the basis of our examination
year are, prima facie, not prejudicial to the interest of
of the records of the Company, the title deeds
the Company.
of immovable properties (other than immovable
properties where the Company is the lessee and According to the information and explanations given to
the leases agreements are duly executed in favour us and on the basis of our examination of the records
of the lessee) disclosed in the financial statements of the Company, the Company has not provided loans
are held in the name of the Company. or provided advances in the nature of loans, or stood
guarantee, or provided security to any other entity.
(d)
Accordingly, clause 3(iii)(a)(c)(d)(e)(f) of the Order is
not applicable.
not revalued its Property, Plant and Equipment (iv) According to the information and explanations given
(including Right of Use assets) or intangible assets to us and on the basis of our examination of records
or both during the year. of the Company, the Company has neither made any
investments nor has it given loans or provided guarantee
(e) According to information and explanations given
or security and therefore the relevant provisions of
to us and on the basis of our examination of the
Sections 185 of the Companies Act, 2013 are not
records of the Company, there are no proceedings
applicable to the Company. The Company has complied
initiated or pending against the Company for
with the provisions of Section 186 of the Companies Act,
holding any benami property under the Prohibition
2013 in relation to investments made.
of Benami Property Transactions Act, 1988 and
rules made thereunder. (v) The Company has not accepted any deposits or amounts
which are deemed to be deposits from the public.
(ii) (a)
The Company is a service company, primarily
Accordingly, clause 3(v) of the Order is not applicable.
rendering asset management services.
Accordingly, it does not hold any physical (vi) According to the information and explanations given
inventories. Accordingly, clause 3(ii)(a) of the Order to us, the Central Government has not prescribed the
is not applicable. maintenance of cost records under Section 148(1) of the
Act for the services provided by it. Accordingly, clause
(b)
3(vi) of the Order is not applicable.

(vii) (a)
According to the information and explanations tax, wealth tax, employees’ state insurance, duty of
given to us and on the basis of our examination customs, duty of excise and value added tax.
of the records of the Company, in our opinion
amounts deducted/ accrued in the books of
given to us and on the basis of our examination
account in respect of undisputed statutory dues
of the records of the Company, no undisputed
including Goods and Services Tax (‘GST’), Provident
amounts payable in respect of Goods and Services
fund, Income-Tax, and other statutory dues have
Tax (‘GST’), Provident fund, Income-Tax, and other
been regularly deposited by the Company with the
statutory dues were in arrears as at March 31, 2022
appropriate authorities. As explained to us, the
for a period of more than six months from the date
Company did not have any dues on account of sales
they became payable.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, statutory dues relating to Goods and Service Tax, Provident Fund, Income-Tax, or other statutory dues
which have not been deposited on account of any dispute are as follows:
Amount Period to which the

Name of the Statute Nature of the Dues Forum where dispute is pending
(`) amount relates
Income Tax Act, 1961 Income Tax 2,705,330 AY 2008-09 High Court of Bombay
Income Tax Act, 1961 Income Tax 869,200 AY 2009-10 Commissioner of Income Tax Appeal
Income Tax Act, 1961 Income Tax 741,820 AY 2010-11 Deputy Commissioner of Income Tax
Income Tax Act, 1961 Income Tax 1,168,520 AY 2011-12 Deputy Commissioner of Income Tax
Income Tax Act, 1961 Income Tax 15,169,450 AY 2012-13 Commissioner of Income Tax Appeal
(viii) According to the information and explanations given to balance sheet of the Company, we report that no
us and on the basis of our examination of the records funds raised on short-term basis have been used for
of the Company, the Company has not surrendered or long-term purposes by the Company.
disclosed any transactions, previously unrecorded as
(e)
income in the books of account, in the tax assessments
given to us and on an overall examination of the
under the Income Tax Act, 1961 as income during
financial statements of the Company, we report
the year.
that the Company has not taken any funds from
(ix) (a)
According to the information and explanations any entity or person on account of or to meet the
given to us and on the basis of our examination of obligations of its subsidiaries, associates or joint
the records of the Company, the Company did not ventures as defined under the Act.
have any loans or borrowings from any lender during
(f)
the year. Accordingly, clause 3(ix)(a) of the Order is
given to us and procedures performed by us, we
not applicable to the Company.
report that the Company has not raised loans
(b)
According to the information and explanations during the year on the pledge of securities held in its
given to us and on the basis of our examination of the subsidiaries, joint ventures or associate companies
records of the Company, the Company has not been (as defined under the Act).
declared a wilful defaulter by any bank or financial
(x) (a) The Company has not raised any moneys by way of
institution or government or government authority.
initial public offer or further public offer (including
(c)
According to the information and explanations debt instruments) Accordingly, clause 3(x)(a) of the
given to us by the management, the Company Order is not applicable.
has not obtained any term loans during the
(b)
year. Accordingly, clause 3(ix)(c) of the Order is
not applicable.
(d)
According to the information and explanations not made any preferential allotment or private
given to us and on an overall examination of the placement of shares or fully or partly convertible

debentures during the year. Accordingly, clause 3(x) (d)

(b) of the Order is not applicable. provided to us, the Group (as per the provisions of
the Core Investment Companies (Reserve Bank)
(xi) (a) Based on examination of the books and records of
Directions, 2016) does not have any CIC.
the Company and according to the information and
explanations given to us, considering the principles (xvii) The Company has not incurred cash losses in the current
of materiality outlined in Standards on Auditing, and in the immediately preceding financial year.
we report that no fraud by the Company or on the
(xviii) There has been no resignation of the statutory auditors
Company has been noticed or reported during the
during the year. Accordingly, clause 3(xviii) of the Order is
course of the audit.
not applicable.
(b)
(xix) According to the information and explanations given
given to us, no report under sub-section (12) of
to us and on the basis of the financial ratios, ageing
Section 143 of the Act has been filed by the auditors
and expected dates of realisation of financial assets
in Form ADT-4 as prescribed under Rule 13 of the
and payment of financial liabilities, other information
Companies (Audit and Auditors) Rules, 2014 with
accompanying the financial statements, our knowledge
the Central Government.
of the Board of Directors and management plans and
(c) We have taken into consideration the whistle- based on our examination of the evidence supporting the
blower complaints received by the Company during assumptions, nothing has come to our attention, which
the year while determining the nature, timing and causes us to believe that any material uncertainty exists
extent of our audit procedures. as on the date of the audit report that the Company is
not capable of meeting its liabilities existing at the date
(xii) (a) (b) (c) According to the information and explanations
of balance sheet as and when they fall due within a period
given to us, the Company is not a Nidhi Company.
of one year from the balance sheet date. We, however,
Accordingly, clause 3(xii)(a)(b)(c) of the Order is
state that this is not an assurance as to the future viability
not applicable.
of the Company. We further state that our reporting is
(xiii) In our opinion and according to the information and based on the facts up to the date of the audit report and
explanations given to us, the transactions with related we neither give any guarantee nor any assurance that all
parties are in compliance with Sections 177 and 188 liabilities falling due within a period of one year from the
of the Act, where applicable, and the details of the balance sheet date, will get discharged by the Company
related party transactions have been disclosed in the as and when they fall due.
financial statements as required by the applicable
(xx) (a) In our opinion and according to the information
accounting standards.
and explanations given to us, there is no unspent
(xiv) (a) Based on information and explanations provided amount under sub-section (5) of Section 135 of
to us and our audit procedures, in our opinion, the Act pursuant to any project other than ongoing
the Company has an internal audit system projects. Accordingly, clause 3(xx)(a) of the Order is
commensurate with the size and nature of not applicable.
its business.
(b)
The Company has transferred the amount
(b) We have considered the internal audit reports of the remaining unspent in respect of ongoing projects,
Company issued till date for the period under audit. to a Special Account till date of our report in
compliance with the provision of sub-section (6) of
(xv) In our opinion and according to the information and
Section 135 of the said Act till the date of our report.
explanations given to us, the Company has not entered
into any non-cash transactions with its directors (xxi) According to the information and explanations given to
or persons connected to its directors and hence, us and based on our examination, the Company does not
provisions of Section 192 of the Act are not applicable to prepare consolidated financial statements. Accordingly,
the Company. clause 3(xxi) of the Order is not applicable.
(xvi) The Company is not required to be registered under For B S R & Co. LLP
Section 45-IA of the Reserve Bank of India Act, 1934. Chartered Accountants
Accordingly, clause 3(xvi)(a) and (b) of the Order is
Firm’s Registration No. 101248W/W-100022
not applicable.
(c) The Company is not a Core Investment Company Kapil Goenka
(CIC) as defined in the regulations made by the Partner
Reserve Bank of India. Accordingly, clause 3(xvi)(c) Membership No. 118189
Place: Mumbai
of the Order is not applicable.
Date: April 27, 2022 UDIN: 22118189AHWLOX6220

Annexure B to the Independent Auditor’s Report

on the Financial Statements of HDFC Asset Management Company Limited for the year ended March 31, 2022.
Report on the internal financial controls with reference to the aforesaid financial statements under Clause (i) of sub-section 3 of
Section 143 of the Companies Act, 2013
(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal understanding of such internal financial controls, assessing
and Regulatory Requirements’ section of our report of even date) the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal
Opinion control based on the assessed risk. The procedures selected
depend on the auditor’s judgement, including the assessment
We have audited the internal financial controls with reference
of the risks of material misstatement of the financial
to financial statements of HDFC Asset Management Company
statements, whether due to fraud or error.
Limited (“the Company”) as of March 31, 2022 in conjunction
with our audit of the financial statements of the Company for We believe that the audit evidence we have obtained is
the year ended on that date. sufficient and appropriate to provide a basis for our audit
opinion on the Company’s internal financial controls with
In our opinion, the Company has, in all material respects,
reference to financial statements.
adequate internal financial controls with reference to financial
statements and such internal financial controls were operating Meaning of Internal Financial controls with
effectively as at March 31, 2022, based on the internal financial Reference to Financial Statements
controls with reference to financial statements criteria A company’s internal financial controls with reference
established by the Company considering the essential to financial statements is a process designed to provide
components of internal control stated in the Guidance Note on reasonable assurance regarding the reliability of financial
Audit of Internal Financial Controls Over Financial Reporting reporting and the preparation of financial statements for
issued by the Institute of Chartered Accountants of India (the external purposes in accordance with generally accepted
“Guidance Note”). accounting principles. A company’s internal financial controls
with reference to financial statements include those policies
Management’s Responsibility for Internal and procedures that (1) pertain to the maintenance of records
Financial Controls that, in reasonable detail, accurately and fairly reflect the
The Company’s management and the Board of Directors
transactions and dispositions of the assets of the Company;
are responsible for establishing and maintaining internal
(2) provide reasonable assurance that transactions are
financial controls based on the internal financial controls with
recorded as necessary to permit preparation of financial
reference to financial statements criteria established by the
statements in accordance with generally accepted accounting
Company considering the essential components of internal
principles, and that receipts and expenditures of the Company
control stated in the Guidance Note. These responsibilities
are being made only in accordance with authorisations of
include the design, implementation and maintenance of
management and directors of the Company; and (3) provide
adequate internal financial controls that were operating
reasonable assurance regarding prevention or timely
effectively for ensuring the orderly and efficient conduct
detection of unauthorised acquisition, use, or disposition of
of its business, including adherence to company’s policies,
the Company’s assets that could have a material effect on the
the safeguarding of its assets, the prevention and detection
financial statements.
of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable Inherent Limitations of Internal Financial controls
financial information, as required under the Companies Act, with Reference to Financial Statements
2013 (hereinafter referred to as “the Act”). Because of the inherent limitations of internal financial
controls with reference to financial statements, including
Auditors’ Responsibility the possibility of collusion or improper management override
Our responsibility is to express an opinion on the Company’s
of controls, material misstatements due to error or fraud
internal financial controls with reference to financial
may occur and not be detected. Also, projections of any
statements based on our audit. We conducted our audit in
evaluation of the internal financial controls with reference to
accordance with the Guidance Note and the Standards on
financial statements to future periods are subject to the risk
Auditing, prescribed under Section 143(10) of the Act, to the
that the internal financial controls with reference to financial
extent applicable to an audit of internal financial controls
statements may become inadequate because of changes in
with reference to financial statements. Those Standards
conditions, or that the degree of compliance with the policies
and the Guidance Note require that we comply with ethical
or procedures may deteriorate.
requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal
financial controls with reference to financial statements For B S R & Co. LLP
were established and maintained and whether such controls Chartered Accountants
operated effectively in all material respects. Firm’s Registration No. 101248W/W-100022
Kapil Goenka
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls Partner
with reference to financial statements and their operating Place: Mumbai Membership No. 118189
effectiveness. Our audit of internal financial controls with Date: April 27, 2022 UDIN: 22118189AHWLOX6220
reference to financial statements included obtaining an

Balance Sheet
as at March 31, 2022
H (in Crore)
As at As at
Particulars Note No.
March 31, 2022 March 31, 2021
Assets
I Financial Assets
a Cash and Cash Equivalents 4 1.87 1.68
b Bank Balance other than (a) above 5 6.20 0.67
c Receivables
(i) Trade Receivables 6 74.53 79.91
(ii) Other Receivables 7 5.98 3.85
d Investments 8 5,570.23 4,753.25
e Other Financial Assets 9 25.20 32.35
Sub-total – Financial Assets 5,684.01 4,871.71
II Non-Financial Assets
a Current Tax Assets (net) 30.63 31.29
b Property, Plant and Equipment 10 122.18 136.86
c Intangible Assets Under Development 10 0.46 1.18
d Goodwill 10 6.04 6.04
e Other Intangible Assets 10 6.88 10.32
f Other Non-Financial Assets 11 30.17 37.30
Sub-total – Non-Financial Assets 196.36 222.99
Total Assets 5,880.37 5,094.70
Liabilities and Equity
Liabilities
I Financial Liabilities
A Payables
Trade Payables
(i) Total Outstanding Dues of Micro Enterprises and Small Enterprises 12 - -
(ii) Total Outstanding Dues of Creditors Other than Micro Enterprises and Small 12 29.24 25.88
Enterprises
B Other Financial Liabilities 13 189.64 204.13
Sub-total – Financial Liabilities 218.88 230.01
II Non-Financial Liabilities
a Current Tax Liabilities (net) 7.37 4.34
b Provisions 14 11.79 7.88
c Deferred Tax Liabilities (net) 15 75.34 32.13
d Other Non-Financial Liabilities 16 36.95 44.16
Sub-total – Non-Financial Liabilities 131.45 88.51
Total Liabilities 350.33 318.52
III Equity
a Equity Share Capital 17 106.64 106.48
b Other Equity 18 5,423.40 4,669.70
Sub-total – Equity 5,530.04 4,776.18
Total Liabilities and Equity 5,880.37 5,094.70
See summary of significant accounting policies and accompanying notes which form an integral part of the financial statements.
As per our report attached of even date For and on behalf of the Board of Directors
For B S R & Co. LLP Deepak S. Parekh Navneet Munot
Chartered Accountants Chairman Managing Director & Chief Executive Officer
ICAI Firm Registration No. 101248W/W-100022 (DIN: 00009078) (DIN: 05247228)
Kapil Goenka Naozad Sirwalla Sylvia Furtado
Partner Chief Financial Officer Company Secretary
Membership No. 118189 (ACS: 17976)
Mumbai, April 27, 2022

FINANCIAL STATEMENTS BALANCE SHEET | STATEMENT OF PROFIT AND LOSS
Statement of Profit and Loss

for the year ended March 31, 2022
H (in Crore except per equity share data)

For the year ended For the year ended
Particulars Note No.
March 31, 2022 March 31, 2021
Revenue from Operations
Asset Management Services 19 2,115.36 1,852.53
Other Income 20 317.84 349.21
Total Income 2,433.20 2,201.74
Expenses
Finance Costs 28 8.64 8.95
Fees and Commission Expenses 5.41 5.69
Employee Benefits Expenses 21 312.20 226.75
Depreciation, Amortisation and Impairment 10 53.85 55.41
Other Expenses 22 197.81 155.99
Total Expenses 577.91 452.79
Profit Before Tax 1,855.29 1,748.95
Tax Expense
Current Tax 25 418.96 369.39
Deferred Tax Charge/(Credit) 25 43.20 53.80
Total Tax Expense 462.16 423.19
Profit After Tax 1,393.13 1,325.76
Other Comprehensive Income
(i) Items that will not be reclassified to profit or loss
- Remeasurement gain/(loss) of the defined benefit plans 0.66 (0.92)
(ii) Income tax relating to items that will not be reclassified to profit or loss
- Tax on Remeasurement of the defined benefit plans (0.17) 0.23
Total Other Comprehensive Income 0.49 (0.69)
Total Comprehensive Income 1,393.62 1,325.07
Earnings per Equity Share (Face Value `5) (see note 27)
- Basic 65.36 62.28
- Diluted 65.31 62.16



Statement of Changes in Equity

A. Equity Share Capital

H (in Crore)
Balance at the Changes in equity Balance at the end of

Particulars share capital during
beginning of the year the year
the year
Equity Shares of `5 each (March 31, 2021: `5 each), fully paid-up
As at March 31, 2021 106.40 0.08 106.48
As at March 31, 2022 106.48 0.16 106.64
B. Other Equity
H (in Crore)
Share Reserves and Surplus
Application
Capital Share Options Total
Particulars Money - Securities General Retained
Pending Redemption Outstanding
Premium Reserve Earnings
allotment Reserve Account
Opening balance as at April 01, 2020 0.00 52.41 555.04 174.97 6.92 3,133.52 3,922.86
Profit for the year - - - - - 1,325.76 1,325.76
Other Comprehensive Income – - - - - - (0.69) (0.69)
Remeasurement gain/(loss) of the defined
benefit plans (net of tax)
Total Comprehensive Income for the year - - - - - 1,325.07 1,325.07
Final Equity Dividend Paid - - - - - (595.96) (595.96)
Transfer from Share Options Outstanding - - 1.74 - (1.74) - -
Account to Securities Premium (towards
options exercised)
Additions during the year 10.45 - 10.38 - 7.35 - 28.18
Utilised during the year (10.45) - - - - - (10.45)
Changes during the year - - 12.12 - 5.61 729.11 746.84
Closing balance as at March 31, 2021 0.00 52.41 567.16 174.97 12.53 3,862.63 4,669.70
Opening balance as at April 01, 2021 0.00 52.41 567.16 174.97 12.53 3,862.63 4,669.70
Profit for the year - - - - - 1,393.13 1,393.13
Other Comprehensive Income – - - - - - 0.49 0.49
Remeasurement gain/(loss) of the defined
benefit plans (net of tax)
Total Comprehensive Income for the year - - - - - 1,393.62 1,393.62
Final Equity Dividend Paid - - - - - (724.43) (724.43)
Transfer from Share Options Outstanding - - 3.17 - (3.17) - -
Account to Securities Premium (towards
options exercised)
Additions during the year 21.36 - 21.19 - 63.32 - 105.87
Utilised during the year (21.36) - - - - - (21.36)
Changes during the year 0.00 - 24.36 - 60.15 669.19 753.70
Closing balance as at March 31, 2022 0.00 52.41 591.52 174.97 72.68 4,531.82 5,423.40
Membership No: 118189 (ACS: 17976)

FINANCIAL STATEMENTS STATEMENT OF CHANGES IN EQUITY | STATEMENT OF CASH FLOWS
Statement of Cash Flows

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
A. Cash Flow from Operating Activities
Profit Before Tax* 1,855.29 1,748.95
Add/(Less): Adjustments for
Depreciation, Amortisation and Impairment 53.85 55.41
Finance Costs 8.64 8.95
Share-based Payments to Employees 63.32 7.35
(Profit)/Loss on Sale of Investments (net) (35.21) (91.29)
Fair Value (Gain)/Loss on Investments (244.91) (217.06)
Net (Gain)/Loss on foreign currency transactions and translations 0.00 0.01
(Profit)/Loss on Derecognition of Property, Plant and Equipment and Other Intangible Assets (net) (0.04) (0.04)
Investment Income from Financial Instruments (31.20) (32.00)
Other Interest Income (1.26) (1.57)
Operating Profit before working capital changes 1,668.48 1,478.71
Adjustments for:
(Increase)/Decrease in Trade Receivables 5.37 (19.31)
(Increase)/Decrease in Other Receivables (2.13) 0.14
(Increase)/Decrease in Other Financial Assets (0.23) 0.10
(Increase)/Decrease in Other Non-Financial Assets 7.04 (10.29)
Increase/(Decrease) in Trade Payable 3.40 (20.80)
Increase/(Decrease) in Other Financial Liabilities (10.12) 23.63
Increase/(Decrease) in Provisions 3.91 0.63
Increase/(Decrease) in Other Non-Financial Liabilities (6.55) 0.19
Cash generated from/(used in) operations 1,669.17 1,453.00
Income Tax Paid (415.44) (367.68)
Net cash from/(used in) operating activities (A) 1,253.73 1,085.32
B. Cash Flow from Investing Activities
Purchase of Property, Plant and Equipment and Other Intangible Assets (10.23) (11.62)
Proceeds from Sale of Property, Plant and Equipment and Other Intangible Assets 0.06 0.04
Purchase of Investments (2,895.32) (3,980.90)
Proceeds from Sale of Investments 2,350.18 3,467.30
Dividend Received 0.19 0.57
Interest Received/(Paid) 47.11 41.90
Net cash from/(used in) investing activities (B) (508.01) (482.71)

Statement of Cash Flows

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
C. Cash Flow from Financing Activities
Proceeds from Issuance of Share Capital 21.36 10.46
Prinicipal Element of Lease Payments (33.82) (33.12)
Interest Element of Lease Payments (8.64) (8.95)
Final Equity Dividend Paid (724.43) (595.96)
Net cash from/(used in) financing activities (C) (745.53) (627.57)
Net Increase/(Decrease) in Cash and Cash Equivalents (A + B + C) 0.19 (24.96)
Cash and Cash Equivalents at the beginning of the year 1.68 26.64
Cash and Cash Equivalents at the end of the year 1.87 1.68
Net Increase/(Decrease) in Cash and Cash Equivalents 0.19 (24.96)
Cash and cash equivalents comprising of:
Balance with banks 1.87 1.68
Effect of exchange rate difference on balances with banks in foreign currency (0.00) 0.00
Total 1.87 1.68
*Amount spent towards Corporate Social Responsibility expense as per Section 135(5) of the 30.10 26.99
Companies Act, 2013 (see note 32)
Note: The above Statement of Cash Flows has been prepared under the ‘Indirect Method’ as set out in Ind AS 7, ‘Statement of Cash Flows’.


Membership No.118189 (ACS: 17976)

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS
Notes to Financial Statements

1. Company overview c) Functional and presentation currency

HDFC Asset Management Company Limited (‘the Indian Rupee (`) is the currency of the primary
Company’) is a Public Limited Company domiciled in India economic environment in which the Company
and its registered office is situated at HDFC House, 2nd operates and hence the functional currency of
Floor, H.T Parekh Marg, 165-166, Backbay Reclamation, the Company. Accordingly, the management has
Churchgate, Mumbai – 400 020. The Company has determined that financial statements are presented
been incorporated under the Companies Act, 1956 in Indian Rupees (`).
on December 10, 1999 and was approved to act as the
Asset Management Company for HDFC Mutual Fund d) Foreign currency transactions and balances
by Securities and Exchange Board of India (SEBI) vide Foreign currency transactions are translated into
its letter dated July 03, 2000. HDFC Trustee Company the functional currency using the exchange rates
Limited (‘the Trustee’) has appointed the Company to at the dates of the transactions. Foreign exchange
act as the investment manager of HDFC Mutual Fund. gains and losses resulting from the settlement
The Company is also registered under the SEBI (Portfolio of such transactions and from the translation of
Managers) Regulations, 1993 and provides Portfolio monetary assets and liabilities denominated in
Management Services. foreign currencies at year end exchange rates are
recognised in Statement of Profit or Loss.
As at March 31, 2022, Housing Development Finance
Corporation Limited, the holding company owned e) Rounding Off
52.60% of the Company’s equity share capital.
All amounts have been rounded-off to the
The equity shares of the Company have been listed nearest Crore up to two decimal places, unless
on National Stock Exchange of India Limited and BSE otherwise indicated.
Limited since August 06, 2018.
f) Basis of measurement
2. Basis of preparation and recent accounting The financial statements have been prepared on the
developments historical cost basis except for the following items:
2.1 Basis of preparation Items Measurement basis
a) Statement of compliance Certain financial instruments Fair value
These financial statements have been prepared (as explained in the
accounting policies below)
and presented on going concern basis and in
accordance with the Indian Accounting Standards Net defined benefit (asset)/ Fair value of plan assets less
liability present value of defined
(Ind AS) as per the Companies (Indian Accounting
benefit obligations
Standards) Rules, 2015 notified under Section 133
Equity settled share-based Fair value of the options
of the Companies Act, 2013, (the ‘Act’) and other
payments granted as on the grant date
relevant provisions of the Act, as amended from
time to time.
g) Use of estimates and judgements
The financial statements were approved for issue by In preparing these financial statements,
the Company’s Board of Directors on April 27, 2022. management has made judgements, estimates
Details of the Company’s accounting policies are and assumptions that affect the application of
included in Note 3. accounting policies and the reported amounts of
assets, liabilities, revenue and expenses. Actual
b) Presentation of financial statements results may differ from these estimates.
The Company presents its balance sheet in order The Management believes that these estimates
of liquidity. An analysis regarding recovery or are prudent and reasonable and are based upon
settlement within 12 months after the reporting the Management’s best knowledge of current
date and more than 12 months after the reporting events and actions as on the reporting date. Actual
date is presented in Note 36.


results could differ from these estimates and the liability in an orderly transaction between
differences between actual results and estimates market participants at the measurement date.
are recognised in the periods in which the results/
Valuation models that employ significant
actions are known or materialised. Revisions to
unobservable inputs require a higher degree of
accounting estimates are recognised prospectively.
judgement and estimation in the determination of
fair value. Judgement and estimation are usually
Assumptions and estimation uncertainties
required for selection of the appropriate valuation
Information about critical judgements, assumptions methodology, determination of expected future
and estimation uncertainties that have a significant cash flows on the financial instrument being valued,
risk of resulting in a material adjustment is included determination of probability of counterparty
in the following notes: default and selection of appropriate discount rates.
- N
ote 3.3 (A) (iii) and 10 – estimates of useful The management regularly reviews significant
lives and residual value of Property, Plant and unobservable inputs and valuation adjustments.
Equipment, and other intangible assets;
Fair values are categorised into different levels in a
- N
ote 10 – impairment test of non-financial assets: fair value hierarchy based on the inputs used in the
key assumptions underlying recoverable amounts valuation techniques.
including the recoverability of expenditure on
intangible assets; When measuring the fair value of an asset or a
liability, the Company uses observable market data
- N
ote 23 – measurement of defined benefit as far as possible. If the inputs used to measure the
obligations: key actuarial assumptions; fair value of an asset or a liability fall into different
- Note 24 – Share-based payments; levels of the fair value hierarchy, then the fair
value measurement is categorised in its entirety
- Note 25 – recognition of deferred tax assets; in the same level of the fair value hierarchy as
- N
ote 30 – recognition and measurement of the lowest level input that is significant to the
provisions and contingencies; key assumptions entire measurement.
about the likelihood and magnitude of an outflow The Company recognises transfers between levels
of resources, if any; of the fair value hierarchy at the end of the reporting
- N
ote 35 – Financial instruments – Fair values, risk period during which the change has occurred.
management and impairment of financial assets;
Further information about the assumptions
- N
ote 38 – estimation uncertainty relating to the made in measuring fair values is included in the
global health pandemic. following notes:
h) Measurement of fair values - N

ote 24 – Share-based payment
A number of the Company’s accounting policies - N

ote 35 – Financial instruments – Fair values and
and disclosures require the measurement of fair risk management
values, for both financial and non-financial assets
and liabilities. 2.2 Recent Accounting Developments:
The Company has an established control framework Standards issued but not yet effective
with respect to the measurement of fair values. Ministry of Corporate Affairs (“MCA”) notifies new
Measurement of fair values includes determining standard or amendments to the existing standards.
appropriate valuation techniques. There is no such notification on accounting standards
which would have been applicable to the Company from
The objective of valuation techniques is to arrive at
April 01, 2022.
a fair value measurement that reflects the price that
would be received on sale of asset or paid to transfer


3. Significant Accounting Policies A financial asset is measured at FVOCI if it meets

both of the following conditions and is not
3.1 Cash and Cash Equivalents
designated as at FVTPL:
Cash and cash equivalents include cash on hand, call
deposits and other short-term, highly liquid investments − the asset is held within a business model
with original maturities of three months or less that are whose objective is achieved by both collecting
readily convertible to known amounts of cash and which contractual cash flows and selling financial
are subject to an insignificant risk of change in value. assets; and
− the contractual terms of the financial asset give
3.2 Financial Instruments rise on specified dates to cash flows that are solely
(i) Recognition and initial measurement payments of principal and interest on the principal
amount outstanding.
All financial assets and financial liabilities are initially
recognised when the Company becomes a party to However, on initial recognition of an equity
the contractual provisions of the instrument. investment that is not held for trading, the
Company may irrevocably elect to present
A financial asset or financial liability which is not
subsequent changes in the investment’s fair value
recognised at Fair Value Through Profit and Loss,
in Other Comprehensive Income (OCI) (designated
is initially measured at fair value plus transaction
as FVOCI – equity investment). This election is
costs that are directly attributable to its acquisition
made on an investment‑by‑investment basis.
or issue.
All financial assets not classified as measured at
Financial assets amortised cost or FVOCI as described above are
measured at FVTPL. On initial recognition, the
Classification:
Company may irrevocably designate a financial
On initial recognition, a financial asset is classified asset as at FVTPL that otherwise meets the
as measured at requirements to be measured at amortised cost
- Amortised Cost; or at FVOCI, if doing so eliminates or significantly
reduces an accounting mismatch that would
- Fair Value Through Other Comprehensive Income otherwise arise.
(FVOCI); or
- Fair Value Through Profit and Loss (FVTPL) ssessment whether contractual cash flows are
A
solely payments of principal and interest (SPPI)
Financial assets are not reclassified subsequent to
For the purposes of this assessment, ‘principal’
their initial recognition, except if and in the period
is defined as the fair value of the financial asset
the Company changes its business model for
on initial recognition. ‘Interest’ is defined as
managing financial assets.
consideration for the time value of money and for
A financial asset is measured at amortised cost if it the credit risk associated with the principal amount
meets both of the following conditions and is not outstanding during a particular period of time
designated as at FVTPL: and for other basic lending risks and costs (e.g.
liquidity risk and administrative costs), as well as a
− the asset is held within a business model whose
profit margin.
objective is to hold assets to collect contractual
cash flows; and In assessing whether the contractual cash flows
are solely payments of principal and interest, the
− t he contractual terms of the financial asset give
Company considers the contractual terms of the
rise on specified dates to cash flows that are solely
instrument. This includes assessing whether the
payments of principal and interest on the principal
financial asset contains a contractual term that
amount outstanding.
could change the timing or amount of contractual


cash flows such that it would not meet this condition. (iii) Financial liabilities:
In making this assessment, the Company considers:
Classification, subsequent measurement, gains
− contingent events that would change the amount and losses
or timing of cash flows;
Financial liabilities are classified as measured at
− t erms that may adjust the contractual coupon amortised cost or FVTPL. Financial liabilities at
rate, including variable interest rate features; FVTPL are measured at fair value and net gains
and losses, including any interest expense, are
− prepayment and extension features; and
recognised in Statement of Profit and Loss. Other
− t erms that limit the Company’s claim to cash flows Financial liabilities are subsequently measured at
from specified assets. amortised cost using the effective interest method.
Interest expense and foreign exchange gains and
Subsequent measurement and gains and losses: losses are recognised in the Statement of Profit
and Loss. Any gain or loss on derecognition is also
Financial These assets are subsequently measured
assets at at amortised cost using the effective recognised in the Statement of Profit and Loss.
amortised interest rate method. The amortised cost
cost is reduced by impairment losses. Interest (iv) Derecognition
income, foreign exchange gains and losses
and impairment losses are recognised in Financial assets
the Statement of Profit and Loss. Any gain The Company derecognises a financial asset when
or loss on derecognition is recognised in the the contractual rights to the cash flows from the
Statement of Profit and Loss. financial asset expire, or it transfers the rights to
Debt These assets are subsequently measured receive the contractual cash flows in a transaction
investments at fair value. Interest income under effective in which substantially all of the risks and rewards
measured at interest method, foreign exchange gains
of ownership of the financial asset are transferred
FVOCI and losses and impairment losses are
recognised in the Statement of Profit or in which the Company neither transfers nor
and Loss. Other net gains and losses are retains substantially all of the risks and rewards
recognised in OCI. On derecognition, of ownership and does not retain control of the
gains and losses accumulated in OCI are financial asset.
reclassified to the Statement of Profit and
Loss. If the Company enters into transactions whereby
Equity These assets are subsequently measured it transfers assets recognised on its balance sheet,
investments at fair value. Dividends are recognised as but retains either all or substantially all of the
at FVOCI income in the Statement of Profit and Loss risks and rewards of the transferred assets, the
unless the dividend clearly represents transferred assets are not derecognised.
a recovery of part of the cost of the
investment. Other net gains and losses are Financial liabilities
recognised in OCI and are not reclassified to
Statement of Profit or Loss. The Company derecognises a financial liability
Financial These assets are subsequently measured at when its contractual obligations are discharged or
assets at fair value. Net gains and losses, any interest cancelled, or expire.
FVTPL or dividend income, are recognised and are
presented separately in the Statement of (v) Impairment of financial instruments
Profit and Loss
The Company recognises loss allowances using the
expected credit loss (ECL) model for the financial
(ii) Classification as debt or equity assets which are not classified as Fair Value Through
Debt and equity instruments issued by the Profit and Loss or Equity investments at FVOCI.
Company are classified as either financial liabilities Expected credit losses are measured at an amount
or as equity in accordance with the substance of the equal to the 12-month ECL, unless there has been a
contractual arrangements and the definition of a significant increase in credit risk or the assets have
financial liability and an equity instrument.


become credit impaired from initial recognition in Cost of an item of property, plant and equipment
which case, those are measured at lifetime ECL. comprises its purchase price (after deducting trade
The amount of expected credit losses (or reversal) discounts and rebates) including import duties and
that is required to adjust the loss allowance at the non-refundable taxes, any directly attributable
reporting date is recognised as an impairment gain cost of bringing the item to its working condition for
or loss in the Statement of Profit and Loss. its intended use and estimated costs of dismantling
and removing the item and restoring the site on
Measurement of expected credit losses which it is located.
Expected credit losses are a probability-weighted
estimate of credit losses. Credit losses are (ii) Subsequent expenditure
measured as the present value of all cash shortfalls Subsequent expenditure is capitalised only if it
(i.e. the difference between the cash flows due is probable that the future economic benefits
to the Company in accordance with the contract associated with the expenditure will flow to
and the cash flows which the Company expects to the Company and the cost of the item can be
receive). measured reliably.
Presentation of allowance for expected credit (iii) Depreciation

losses in the balance sheet Depreciation on property, plant and equipment
Loss allowances for financial assets measured is provided on straight-line basis as per the
at amortised cost are deducted from the gross estimated useful life and in the manner prescribed
carrying amount of the assets. in Schedule II of the Companies Act, 2013 except for
certain assets.
Write off
Following is the summary of useful lives of the
The gross carrying amount of a financial asset is assets as per management’s estimate and as
written off (either partially or in full) to the extent required by the Companies Act, 2013 except assets
that there is no realistic prospect of recovery. This individually costing less than Rupees five thousand
is generally the case when the Company determines which are fully depreciated in the year of purchase/
that the counter party does not have assets or acquisition.
sources of income that could generate cash flows to
repay the amounts. However, financial assets that Useful Life (No. of years)
are written off could still be subject to enforcement Class of property, plant As per the As per
and equipment
activities in order to comply with the Company’s Companies Act, management’s
2013 estimate
procedures for recovery of amounts due.
Buildings* 60 50
(vi) Off-setting financial instruments Computer Equipment:
Financial assets and liabilities are offset and the net Server and Network* 6 4
amount is presented in the balance sheet where Others 3 3
there is a legally enforceable right to offset the Furniture and 10 7
recognised amounts and there is an intention to Fixtures*
settle on a net basis or realise the asset and settle Electrical 10 7
the liability simultaneously. Installations*
Office Equipment 5 5
3.3 (A) Property, plant and equipment Vehicles* 8 4
(i) Recognition and measurement Improvement of Not specified Over the lease
Rented Premises term or 5 years,
Items of property, plant and equipment are whichever is less
measured at cost, less accumulated depreciation
and accumulated impairment losses, if any. *Based on technical advice, management is of the opinion
that the useful lives of these assets reflect the period over
which they are expected to be used.


Depreciation method, useful lives and residual straight-line method, and is included in depreciation
values are reviewed at each financial year end and and amortisation in the Statement of Profit and
adjusted, if required. Loss. Computer Software is being amortised over a
period of 3 years.
Depreciation on additions/disposals is provided on
a pro- rata basis i.e. from/ up to the date on which Amortisation method, useful lives and residual
asset is ready to use/ disposed off. values are reviewed at the end of each financial year
and adjusted, if required.
(iv) Derecognition
The cost and related accumulated depreciation are (iii) Derecognition
eliminated from the financial statements upon sale Intangible assets are derecognised on disposal or
or retirement of the asset and the resultant gains or when no future economic benefits are expected
losses are recognised in the Statement of Profit and to arise from its continuous use, and the resultant
Loss. Assets to be disposed off are reported at the gains or losses are recognised in the Statement of
lower of the carrying value or the fair value less cost Profit and Loss.
to sell.
(D) Intangible assets under development
(B) Goodwill The intangible assets under development includes
Goodwill was generated on acquisition of rights to cost of intangible assets that are not ready for their
operate, administer and manage the schemes of intended use less accumulated impairment losses.
erstwhile Morgan Stanley Mutual Fund. Goodwill
is not amortised but is tested for impairment 3.4 Impairment of non-financial assets
annually or more frequently if events or changes in The Company’s non-financial assets, other than deferred
circumstances indicate that it might be impaired, tax assets, are reviewed at each reporting date to
and is carried at cost less accumulated impairment determine whether there is any indication of impairment.
losses, if any. If any such indication exists, then the asset’s recoverable
amount is estimated.
(C) Other intangible assets
The recoverable amount of goodwill is the higher of its

Other intangible assets including computer
value in use and its fair value. Value in use is based on the
software are measured at cost and recognised if
estimated future cash flows, discounted to their present
it is probable that the expected future economic
value using a pre-tax discount rate that reflects current
benefits that are attributable to the asset will
market assessments of the time value of money and the
flow to the entity and the cost of the asset can
risks specific to it.
be measured reliably. Such other intangible
assets are subsequently measured at cost less An impairment loss is recognised if the carrying amount
accumulated amortisation and any accumulated of an asset or goodwill exceeds its estimated recoverable
impairment losses. amount. Impairment losses are recognised in the
Statement of Profit and Loss.
(i) Subsequent expenditure
An impairment loss in respect of goodwill is not
Subsequent expenditure is capitalised only when it subsequently reversed. In respect of other assets
increases the future economic benefits embodied for which impairment loss has been recognised in
in the specific asset to which it relates. All other prior periods, the Company reviews at each reporting
expenditure is recognised in the Statement of Profit date whether there is any indication that the loss has
and Loss as incurred. decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used
(ii) Amortisation to determine the recoverable amount. Such a reversal is
Amortisation is calculated to write off the cost made only to the extent that the asset’s carrying amount
of intangible assets less their estimated residual does not exceed the carrying amount that would have
values over their estimated useful lives using the been determined, net of depreciation or amortisation, if
no impairment loss had been recognised.


3.5 Revenue recognition Nature, timing of satisfaction of performance

Services
obligations and significant payment terms
(i) Rendering of services Portfolio The Company provides portfolio
The Company recognises revenue from contracts Management management services and advisory
with customers based on a five step model as and Advisory services to its clients wherein a separate
Services agreement is entered into with each client.
set out in Ind AS 115–Revenue from Contracts
The Company earns management fees
with Customers, to determine when to recognise which is generally charged as a percent of
revenue and at what amount. the Assets Under Management (AUM) and is
recognised on accrual basis. The Company,
Revenue is measured based on the consideration
in certain instances also has a right to charge
specified in the contract with a customer. Revenue performance fee to the clients if the portfolio
from contracts with customers is recognised when achieves a particular level of performance as
services are provided and it is highly probable that mentioned in the agreement with the client,
a significant reversal of revenue is not expected to the extent permissible under applicable
to occur. regulations. Generally, no upfront fee is
charged to the clients.
If the consideration promised in a contract includes The contracts include a single performance
a variable amount, the Company estimates the obligation (series of distinct services) that
amount of consideration to which it will be entitled is satisfied over time and the management
in exchange for rendering the promised services to fees and/or the performance fees earned are
a customer. The amount of consideration can vary considered as variable consideration.
because of discounts, rebates, refunds, credits,
price concessions, incentives, performance
(ii) Recognition of dividend income, interest income
bonuses, or other similar items. The promised
or expense, gains and losses from financial
consideration can also vary if an entitlement to the
instruments
consideration is contingent on the occurrence or
non-occurrence of a future event. Dividend income is recognised in the Statement of
Profit and Loss on the date on which the Company’s
Nature of services right to receive dividend is established.
The Company principally generates revenue by Interest income or expense is recognised using the
providing asset management services to HDFC effective interest rate method.
Mutual fund and other clients.
The ‘effective interest rate’ is the rate that exactly
Nature, timing of satisfaction of performance discounts estimated future cash payments or
Services
obligations and significant payment terms receipts through the expected life of the financial
Investment The Company has been appointed as the instrument to:
Management investment manager to HDFC Mutual
Services Fund. The Company receives investment - the gross carrying amount of the financial asset; or
management fees from the mutual fund - the amortised cost of the financial liability.
which is charged as a percent of the Assets
Under Management (AUM) and is recognised In calculating interest income and expense, the
on accrual basis. The maximum amount effective interest rate is applied to the carrying
of management fee that can be charged is amount of the asset (when the asset is not credit-
subject to applicable SEBI regulations.
impaired) or to the amortised cost of the liability.
The contract includes a single performance However, for financial assets that have become
obligation (series of distinct services) that
credit-impaired subsequent to initial recognition,
is satisfied over time and the investment
management fees earned are considered as interest income is calculated by applying the
variable consideration. effective interest rate to the amortised cost of
the financial asset. If the asset is no longer credit-
impaired, then the calculation of interest income
reverts to the gross basis.


Interest income/expense on financial instruments (ii) Share-based payment transactions

at FVTPL is not included in fair value changes but The Employee Stock Option Scheme provides for
presented separately. the grant of options to acquire equity shares of the
The realised gains/losses from financial instruments Company to its employees and certain directors.
at FVTPL represents the difference between The period of vesting and period of exercise are as
the carrying amount of a financial instrument specified within the schemes. The fair value at grant
at the beginning of the reporting period, or the date of equity settled share-based payment options
transaction price if it was purchased in the current granted to employees is recognised as an employee
reporting period, and its settlement price. benefit expense, with a corresponding increase
in equity, over the period that the employees

The unrealised gains/losses represents the unconditionally become entitled to the options.
difference between the carrying amount of a The amount recognised as expense is based on the
financial instrument at the beginning of the period, estimate of the number of options for which the
or the transaction price if it was purchased in the related service conditions are expected to be met,
current reporting period, and its carrying amount such that the amount ultimately recognised as an
at the end of the reporting period. expense is based on the number of options that do
meet the related service conditions at the vesting
3.6 Scheme expenses & commission date. Such compensation cost is amortised over
Certain scheme related expenses and commission paid the vesting period of the respective tranches of
to distributors were being borne by the Company till such grant.
October 22, 2018. These expenses had been charged
in accordance with applicable circulars and guidelines (iii) Defined contribution plans
issued by SEBI and Association of Mutual Funds in India A defined contribution plan is a post-employment
(AMFI) and had been presented under the respective benefit plan under which the Company pays fixed
expense heads in the Statement of Profit and Loss. contributions into an account with a separate
Any brokerage or commission paid by the Company in entity and has no legal or constructive obligation
line with the applicable regulations is being amortised to pay further amounts. The Company makes
over the contractual period. specified periodic contributions to the credit of the
employees’ account with the Employees’ Provident
Pursuant to circulars issued by SEBI in this regard, with Fund Organisation. Obligations for contributions
effect from October 22, 2018, all of these expenses, to defined contribution plans are recognised as
subject to certain permitted exceptions, are being borne an employee benefit expense in the Statement
by the respective schemes. of Profit and Loss in the periods during which the
New Fund Offer (NFO) expenses on the launch of related services are rendered by employees.
schemes are borne by the Company and recognised in
the Statement of Profit and Loss as and when incurred. National Pension System (NPS)
NPS is a defined contribution plan. In case employee
3.7 Employee benefits opts for NPS, the Company contributes a sum not
exceeding 10% of basic salary plus dearness pay,
(i) Short-term employee benefits if any, of the eligible employees’ salary to the NPS.
Short-term employee benefit obligations are The Company recognises such contribution as an
measured on an undiscounted basis and are expense as and when incurred.
expensed as the related service is provided. A
liability is recognised for the amount expected (iv) Defined benefit plans
to be paid, if the Company has a present legal or
Gratuity
constructive obligation to pay this amount as a
result of past service provided by the employee, and A defined benefit plan is a post-employment benefit
the amount of obligation can be estimated reliably. plan other than a defined contribution plan. The
Company’s net obligation in respect of the defined


benefit plan is calculated by estimating the amount and prior periods; that benefit is discounted to
of future benefit that employees have earned in the determine its present value, and the fair value of
current and prior periods, discounting that amount any related assets is deducted. The obligation is
and deducting the fair value of any plan assets. measured on the basis of an independent actuarial
valuation using the projected unit credit method.
The calculation of the defined benefit obligation
Remeasurements gains or losses are recognised as
is performed periodically by a qualified actuary
profit or loss in the period in which they arise.
using the projected unit credit method. When
the calculation results in a potential asset for the
3.8 Provisions (other than for employee benefits),
Company, the recognised asset is limited to the
contingent liabilities, contingent assets and
present value of economic benefits available in
commitments
the form of any future refunds from the plan or
reductions in future contributions to the plan (‘the A provision is recognised if, as a result of a past event, the
asset ceiling’). In order to calculate the present Company has a present legal or constructive obligation
value of economic benefits, consideration is given that can be estimated reliably, and it is probable that an
to any minimum funding requirements. outflow of economic benefits will be required to settle
the obligation. Provisions are determined by discounting
Remeasurement of the net defined benefit liability, the expected future cash flows (representing the best
which comprise actuarial gains and losses, the estimate of the expenditure required to settle the
return on plan assets (excluding interest) and present obligation at the balance sheet date) at a pre-
the effect of the asset ceiling (if any, excluding tax rate that reflects current market assessments of
interest), are recognised in Other Comprehensive the time value of money and the risks specific to the
Income. The Company determines the net interest liability. The unwinding of the discount is recognised as
expense/income on the net defined benefit liability/ finance cost. Expected future operating losses are not
asset for the period by applying the discount rate provided for.
used to measure the defined benefit obligation at
the beginning of the annual period to the then-net
Contingent liabilities are disclosed when there is
defined benefit liability/asset, taking into account a possible obligation arising from past events, the
any changes in the net defined benefit liability/ existence of which will be confirmed only by the
asset during the period as a result of contributions occurrence or non‑occurrence of one or more uncertain
and benefit payments. Net interest expense and future events not wholly within the control of the
other expenses related to defined benefit plans are Company or a present obligation that arises from past
recognised in the Statement of Profit and Loss. events where it is either not probable that an outflow
of resources will be required to settle the obligation or a
When the benefits of a plan are changed or when a reliable estimate of the amount cannot be made.
plan is curtailed, the resulting change in benefit that
relates to past service (‘past service cost’ or ‘past A contingent asset is not recognised but disclosed in
service gain’) or the gain or loss on curtailment is the financial statements where an inflow of economic
recognised immediately in the Statement of Profit benefit is probable.
and Loss. The Company recognises gains and Commitments includes the amount of purchase order
losses on the settlement of a defined benefit plan (net of advance) issued to counterparties for supplying/
when the settlement occurs. development of assets and amounts pertaining to
Investments which have been committed but not
(v) Other long-term employee benefits called for.
The Company’s net obligation in respect of
Provisions, contingent assets, contingent liabilities and
long-term employee benefits other than post-
commitments are reviewed at each balance sheet date.
employment benefits, which do not fall due wholly
within 12 months after the end of the period in
3.9 Leases
which the employees render the related services,
is the amount of future benefit that employees The Company assesses whether the contract is, or
have earned in return for their service in the current contains, a lease at inception of a contract. A contract is,


or contains, a lease if the contract conveys the right to When the lease liability is remeasured, a corresponding
control the use of an identified asset for a period of time adjustment is made to the carrying amount of the ROU
in exchange for consideration. asset, or is recorded in the Statement of Profit and Loss if
the carrying amount of the ROU asset has been reduced
As a lessee to nil.
The Company leases some office premises. The Company
recognises Right-of-Use (ROU) and lease liabilities for As a lessor:
these leases i.e. these leases are on-balance sheet. When the Company is the lessor, the lease is classified
as either a finance lease or an operating lease. A finance
The lease liability is initially measured at the present
lease is a lease which confers substantially all the risks and
value of the lease payments that are not paid at the
rewards of the leased assets on the lessee. An operating
commencement date and is discounted using the
lease is a lease where substantially all of the risks and
Company’s incremental borrowing rate. Since the
rewards of the leased asset remain with the lessor.
Company does not have any debts, the Company’s
incremental borrowing rate has been determined Amounts due from lessees under finance leases
based on the risk-free rate which is adjusted for the are recorded as receivables. Finance lease income
financial spread based on the credit spread of the is allocated to accounting periods so as to reflect a
holding Company. constant periodic rate of return on the net investment
outstanding in respect of the lease.
Certain leases include lease and non-lease components,
which are accounted for as one single lease component.
3.10 Income tax
Occupancy lease agreements, in addition to contractual
rent payments, generally include additional payments Income tax comprises of current and deferred tax. It is
for certain costs incurred by the landlord, such as recognised in the Statement of Profit and Loss except
maintenance expenses and utilities. To the extent these to the extent that it relates to a business combination
are fixed or determinable, they are included as part of the or to an item recognised directly in equity or in Other
lease payments used to measure the lease liability. Comprehensive Income.
The ROU asset is initially measured at cost, which (i) Current tax
comprises of the initial measurement of the lease liability
Current tax comprises the expected tax payable or
adjusted for any lease payments made at or before the
receivable on the taxable income or loss for the year
commencement date, less any lease incentives received;
and any adjustment to the tax payable or receivable
plus any initial direct costs incurred and an estimate of
in respect of previous years. The amount of current
costs to dismantle and remove the underlying asset or
tax reflects the best estimate of the tax amount
to restore the underlying asset or the site on which it is
expected to be paid or received after considering
located. The ROU assets are subsequently depreciated
the uncertainty, if any, related to income taxes. It is
using the straight-line method from the commencement
measured using tax rates (and tax laws) enacted or
date to the end of the lease term.
substantively enacted by the reporting date.
Leases may include options to extend, terminate the
Current tax assets and current tax liabilities are
lease which are included in the ROU Assets and Lease
offset only if there is a legally enforceable right to
Liability when they are reasonably certain of exercise.
set off the recognised amounts, and it is intended
The lease liability is remeasured when there is a change to realise the asset and settle the liability on a net
in one of the following: basis or simultaneously.
- the Company’s estimate of the amount expected to be
(ii) Deferred tax
payable under a residual value guarantee, or
Deferred tax is recognised in respect of temporary
- the Company’s assessment of whether it will exercise a differences between the carrying amounts of
purchase, extension, or termination option or assets and liabilities for financial reporting purposes
- if there is a modification in the lease. and the corresponding amounts used for taxation


purposes. Deferred tax is also recognised in respect assess the performance of the operating segments of
of carried forward tax losses and tax credits, if any. the Company.
Deferred tax is not recognised for:
3.12 Earnings per share (EPS)
- t emporary differences arising on the initial The basic earnings per share is computed by dividing
recognition of assets or liabilities in a transaction profit after tax attributable to the equity shareholders
that is not a business combination and that affects by the weighted average number of equity shares
neither accounting nor taxable profit or loss at the outstanding during the reporting period.
time of the transaction;
The diluted earnings per share is computed by dividing
- t axable temporary differences arising on the initial profit after tax attributable to the equity shareholders
recognition of goodwill. by the weighted average number of equity shares
Deferred tax assets are recognised to the extent outstanding plus the weighted average number of equity
that it is probable that future taxable profits will shares that would be issued on the conversion of all the
be available against which they can be used. The dilutive potential ordinary shares into ordinary shares.
existence of unused tax losses is strong evidence The number of equity shares used in computing diluted
that future taxable profit may not be available. earnings per share comprises the weighted average
Therefore, in case of losses, the Company number of shares considered for deriving basic earnings
recognises a deferred tax asset only to the extent per share and also weighted average number of equity
that it has sufficient taxable temporary differences shares which would have been issued on the conversion
or there is other convincing evidence that sufficient of all dilutive potential shares, unless they are anti-
taxable profit will be available against which such dilutive.
deferred tax asset can be realised. Deferred tax
assets – unrecognised or recognised, are reviewed 3.13 Trade receivables
at each reporting date and are recognised/reduced
Trade receivables are initially recognised at fair value.
to the extent that it is probable/no longer probable
Subsequently, these assets are held at amortised cost,
respectively that the related tax benefit will
using the effective interest rate method (where the
be realised.
time value of money is significant) net of any expected
Deferred tax is measured at the tax rates that are credit losses.
expected to apply to the period when the asset is
realised or the liability is settled, based on the laws 3.14 Trade payables
that have been enacted or substantively enacted by These amounts represent liabilities for goods and
the reporting date. services provided to the Company prior to the end
The measurement of deferred tax reflects the tax of financial year which are unpaid. Trade payables are
consequences that would follow from the manner presented as financial liabilities. They are recognised
in which the Company expects, at the reporting initially at their fair value, net of transaction costs, and
date, to recover or settle the carrying amount of its subsequently measured at amortised cost using the
assets and liabilities. effective interest method where the time value of money
is significant.
Deferred tax assets and liabilities are offset if there
is a legally enforceable right to offset current tax 3.15 Dividends on equity shares
liabilities and assets, and they relate to income
The Company recognises a liability to make cash
taxes levied by the same tax authority.
distributions to equity shareholders when the
distribution is authorised and the distribution is no
3.11 Operating Segments
longer at the discretion of the Company. As per the

Operating segments are reported in a manner corporate laws in India, a distribution is authorised when
consistent with the internal reporting provided to the it is approved by the shareholders except in case of
chief operating decision maker (CODM). The CODM’s interim dividend. A corresponding amount is recognised
function is to allocate the resources of the Company and directly in equity.


Note 4 Cash and Cash Equivalents

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Balances with Banks 1.87 1.68
Total 1.87 1.68
Note 5 Bank Balance other than Cash and Cash Equivalents

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Other Bank Balances
- Fixed Deposit with Bank (security against bank guarantee) 0.14 0.13
Earmarked Balances with Banks
- Unclaimed Equity Dividend 0.51 0.45
- Withheld Brokerage 0.05 0.09
- Unspent Corporate Social Responsibility Account 5.50 -
Total 6.20 0.67
Note 6 Trade Receivables*

(Considered good – Unsecured)
H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Investment Management Fee Receivable 69.50 76.13
Portfolio Management Fee and Other Advisory Services Fee Receivable 5.03 3.78
Total 74.53 79.91
Trade Receivables Ageing

(Undisputed Trade receivables – Considered good)
H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Unbilled dues (A) 72.18 79.55
Outstanding for following periods from due date of payment
Less than 6 months 2.35 0.25
6 months -1 year 0.00 0.10
1-2 years 0.00 0.01
2-3 years 0.00 0.00
More than 3 years 0.00 0.00
Total Outstanding (B) 2.35 0.36
Total (A+B) 74.53 79.91


Note 7 Other Receivables*

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Related Parties (see note 26) - -
Other than Related Parties 5.98 3.85
Total 5.98 3.85
* No debts are due from directors or other officers or any of them either severally or jointly with any other person. No debts are
due from firms, Limited Liability Partnerships or private companies in which any director is a partner or a director or a member.
Note 8 Investments
H (in Crore)
As at March 31, 2022 As at March 31, 2021
Sr. At Fair Value At Fair Value
Particulars Amortised Amortised
No. Through Total Through Total
Cost Cost
Profit and Loss Profit and Loss
(1) (2) (3=1+2) (1) (2) (3=1+2)
1 Mutual Funds - 4,938.66 4,938.66 - 4,158.41 4,158.41
2 Debt Securities 462.93 6.98 469.91 490.13 32.01 522.14
3 Equity Instruments - 22.85 22.85 - 0.63 0.63
4 Alternative Investment Funds - 115.70 115.70 - 61.43 61.43
5 Venture Capital Fund - 23.11 23.11 - 10.64 10.64
Total Gross Investments (A) 462.93 5,107.30 5,570.23 490.13 4,263.12 4,753.25
6 (i) Investments outside India - - - - - -
(ii) Investments in India 462.93 5,107.30 5,570.23 490.13 4,263.12 4,753.25
Total (B) 462.93 5,107.30 5,570.23 490.13 4,263.12 4,753.25
Less: Allowance for Impairment (C) - - - - - -
Total Net Investments (D = A - C) 462.93 5,107.30 5,570.23 490.13 4,263.12 4,753.25
Note 9 Other Financial Assets

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Interest accrued on Fixed Deposits 0.00 0.00
Interest accrued on Investments 11.22 18.88
Security Deposits 13.98 13.47
Total 25.20 32.35

154
Note 10 (A) Property, Plant and Equipment, Goodwill and Other Intangible Assets
H (in Crore)
Gross Block Depreciation/Amortisation Net Block
Particulars As at As at As at As at As at
For the
April 01, Additions Deductions March 31, April 01, Deductions March 31, March 31,
Notes
year
2021 2022 2021 2022 2022
Property, Plant and
Equipment
Buildings
Freehold 4.34 - - 4.34 0.40 0.10 - 0.50 3.84
Right of Use Asset 211.11 25.18 63.45 172.84 102.41 35.25 62.98 74.68 98.16
ASPIRE. BELIEVE. ACHIEVE.

Furniture & Fixtures 2.60 0.22 0.05 2.77 1.80 0.24 0.05 1.99 0.78
Vehicles 0.50 - - 0.50 0.01 0.12 - 0.13 0.37
Office Equipment 9.83 1.02 0.67 10.18 4.70 2.07 0.67 6.10 4.08
Computer Equipment 25.92 5.29 3.50 27.71 14.40 6.62 3.49 17.53 10.18
Electrical Installations 0.34 - - 0.34 0.34 - - 0.34 -
Improvement of Rented 17.05 1.10 0.37 17.78 10.77 2.61 0.37 13.01 4.77
Premises
Total 271.69 32.81 68.04 236.46 134.83 47.01 67.56 114.28 122.18
Goodwill and Other
Intangible Assets
Goodwill 6.04 - - 6.04 - - - - 6.04
Computer Software 28.72 3.41 8.42 23.71 18.40 6.84 8.41 16.83 6.88
Total 34.76 3.41 8.42 29.75 18.40 6.84 8.41 16.83 12.92
to Financial Statements
Note 10 (A) Property, Plant and Equipment, Goodwill and Other Intangible Assets
H (in Crore)
Gross Block Depreciation/Amortisation Net Block
Particulars As at As at As at
As at As at For the
Notes
Additions Deductions March 31, Deductions March 31, March 31,
April 01, 2020 April 01, 2020 year
2021 2021 2021
Property, Plant and
Equipment
Buildings
Freehold 4.34 - - 4.34 0.30 0.10 - 0.40 3.94
Right of Use Asset 200.74 44.06 33.69 211.11 94.07 34.74 26.40 102.41 108.70
Furniture & Fixtures 2.48 0.16 0.04 2.60 1.41 0.43 0.04 1.80 0.80
Vehicles - 0.50 - 0.50 - 0.01 - 0.01 0.49
Office Equipment 9.10 1.10 0.37 9.83 2.95 2.12 0.37 4.70 5.13
Computer Equipment 23.65 2.97 0.70 25.92 8.51 6.59 0.70 14.40 11.52
Electrical Installations 0.34 - - 0.34 0.30 0.04 - 0.34 -
Improvement of Rented 16.09 1.85 0.89 17.05 7.81 3.85 0.89 10.77 6.28
Premises
Total 256.74 50.64 35.69 271.69 115.35 47.88 28.40 134.83 136.86
Goodwill and Other
Intangible Assets
Goodwill 6.04 - - 6.04 - - - - 6.04
Computer Software 20.15 8.57 - 28.72 10.87 7.53 - 18.40 10.32
Total 26.19 8.57 - 34.76 10.87 7.53 - 18.40 16.36
Impairment testing
The Goodwill relates to acquisition of rights to operate, administer and manage schemes of the erstwhile Morgan Stanley Mutual Fund. The
recoverable amount is the management fee income based on the present value of the future cash flows expected to be derived from the
asset (value in use). Management fee income is assumed to be generated at a constant rate and is discounted using a pre-tax discount rate
FINANCIAL STATEMENTS
of 4.67% (Previous Year: 3.75%) based on one year Government security (G-sec) yield.
An analysis of sensitivity of the computation to a change in key parameters based on reasonably probable assumptions did not identify any
probable scenarios in which the recoverable amount would decrease below the carrying amount of goodwill. Consequently, no impairment
is required.
ANNUAL REPORT 2021-22

155
NOTES TO FINANCIAL STATEMENTS

Note 10 (B) Intangible Assets under Development

For the year ended March 31, 2022
Intangible assets under development ageing schedule
H (in Crore)
As at March 31, 2022
Intangible assets under development
Amount in Intangible asset under development for a period of
Total
Particulars Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 0.46 - - - 0.46
Projects temporarily suspended - - - - -
Total 0.46 - - - 0.46
There are no Intangible assets under development as at March 31, 2022, whose completion is overdue or has exceeded its cost
compared to its original plan.
For the year ended March 31, 2021
(a) Intangible assets under development ageing schedule
H (in Crore)
Amount in Intangible asset under development for a period of
Total
Projects in progress 0.05 0.89 - - 0.94
Projects temporarily suspended - - 0.15 0.09 0.24
Total 0.05 0.89 0.15 0.09 1.18
(b) (i) For Intangible assets under development, whose completion is overdue or has exceeded its cost compared to its
original plan
H (in Crore)
To be completed in
Total
Customer Relationship Management 0.93 - - - 0.93
Software – Completion Overdue
Total 0.93 - - - 0.93
(b) (ii) For Intangible assets under development, whose completion is overdue or has exceeded its cost compared to
its original plan and have been suspended
H (in Crore)
Projects temporarily suspended
To be completed in
Total
Database Replication Software – 0.15 - - - 0.15
Completion Overdue
Automated Collection Accounts 0.09 - - - 0.09
Reconcilation Software – Completion
Overdue
Total 0.24 - - - 0.24


Note 11 Other Non-Financial Assets

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Capital Advances 0.38 0.47
Prepaid Expenses
- Related Parties (see note 26) 7.87 13.78
- Others 11.64 13.57
19.51 27.35
Goods & Services Tax Credit Receivable 6.95 7.97
Other Receivable – Others
- Related Parties (see note 26) 2.61 0.70
- Others 0.72 0.81
3.33 1.51
Total 30.17 37.30
Note 12 Trade Payables

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Outstanding dues of Small Enterprises and Micro Enterprises - -
Outstanding dues of creditors other than Small Enterprises and Micro Enterprises 29.24 25.88
Total 29.24 25.88
Trade Payables Ageing
MSME - -
Others – Undisputed
Unbilled dues 29.24 25.88
Total 29.24 25.88
Note 13 Other Financial Liabilities

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Employee Benefits 65.06 61.02
Other Dues 14.45 23.11
Unclaimed Equity Dividend 0.51 0.45
Lease Liability 109.62 119.55
Total 189.64 204.13
Note 14 Provisions
H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Provision for Employee Benefits (Compensated absences & Leave encashment) 11.79 7.88
Total 11.79 7.88


Note 15 Deferred Tax Liabilities (net) (see note 25)

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Deferred Tax Asset (41.39) (41.57)
Deferred Tax Liability 116.73 73.70
Total 75.34 32.13
Note 16 Other Non-Financial Liabilities

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Statutory Dues 32.98 38.70
Employee Benefits 3.97 5.46
Total 36.95 44.16
Note 17 Share Capital

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Authorised
60,00,00,000 Equity Shares of `5 each (Previous Year: 60,00,00,000 Equity Shares of `5 each) 300.00 300.00
5,00,00,000 Redeemable, Cumulative Non-Convertible Preference Shares of `10 each 50.00 50.00
(Previous Year: 5,00,00,000 Redeemable, Cumulative Non-Convertible Preference Shares of `10 each)
Total 350.00 350.00
Issued, Subscribed and Paid-up
21,32,78,552 Equity Shares of `5 each (Previous Year: 21,29,54,202 Equity Shares of `5 each), fully 106.64 106.48
paid-up
106.64 106.48
a) Movement in Equity Share Capital during the year:

H (in Crore)
March 31, 2022 March 31, 2021
Particulars
No. of Equity Shares Share Capital No. of Equity Shares Share Capital
Shares outstanding at the beginning of the year (face value of 21,29,54,202 106.48 21,28,03,325 106.40
`5 each)
Add: Shares issued during the year (face value of `5 each) 3,24,350 0.16 1,50,877 0.08
Shares outstanding at the end of the year (face value of 21,32,78,552 106.64 21,29,54,202 106.48
`5 each)
b) Terms/Rights attached to Equity Shares

1. The Company had issued only one class of equity shares referred to as equity share having face value of `10 each which
was sub-divided to `5 each w.e.f. February 13, 2018. Each holder of equity shares is entitled to one vote per share.
2. The holders of equity shares are entitled to dividends, if any, proposed by the board of directors and approved by the
Shareholders at the Annual General Meeting.


3. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets
of the Company, after distribution of preferential amount. However, no such preferential amount exists currently. The
distribution will be in proportion to the number of equity shares held by the Shareholders.
c) 11,21,79,830 equity shares of `5 each (Previous Year: 11,21,79,830 equity shares of `5 each) are held by Housing
Development Finance Corporation Limited (Holding Company).
d) Details of Holding Company and Shareholders holding more than 5 percent Share Capital of the Company:

Name of the shareholder No. of Equity Shares % of Share No. of Equity Shares % of Share
(Face Value `5) Capital (Face Value `5) Capital
Housing Development Finance Corporation Limited (Holding 11,21,79,830 52.60 11,21,79,830 52.68
Company)
Abrdn Investment Management Limited (formerly known as 3,45,78,305 16.21 4,52,28,305 21.24
Standard Life Investments Limited)
Life Insurance Corporation of India 1,49,29,855 7.00 Not Applicable Not Applicable
e) 14,52,648 equity shares of `5 each are reserved for issuance towards outstanding employee stock options.
f) No equity shares were bought back during last five years.
g) No shares were allotted as fully paid-up ‘pursuant to any contract without payment being received in cash’ in last five years.
h) 7,89,58,200 fully paid-up equity shares of `10 each were issued by way of bonus shares during the period of five years
immediately preceding the reporting date.
i) Details of shareholding of Promoters:
As at
April 01, 2020
Promoter name No. of Equity % Change No. of Equity % Change No. of Equity
% of total % of total
Shares (Face during the Shares (Face during the Shares (Face
Share Capital Share Capital
Value `5) year# Value `5) year# Value `5)
Housing Development Finance 11,21,79,830 52.60 - 11,21,79,830 52.68 - 11,21,79,830
Corporation Limited (Holding
Company)
Abrdn Investment Management 3,45,78,305 16.21 (23.55) 4,52,28,305 21.24 (20.97) 5,72,28,305
Limited (formerly known as Standard
Life Investments Limited)
#
Computed vis-à-vis number of shares held by the same entity


Note 18 Nature and purpose of reserves

Share application pending allotment
Until the shares are allotted, the amount received is shown under the Share Application Money Pending Allotment.
Capital redemption reserve

Whenever there is a buy-back or redemption of share capital, the nominal value of the capital is transferred to a reserve called
Capital Redemption Reserve so as to retain the capital.
Securities premium
Securities Premium is used to record the premium (amount received in excess of face value of equity shares) on issue of shares.
The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the
Companies Act, 2013. The securities premium also includes amount transfered from Share options outstanding account upon
exercise of options by employees and subsequent allotment of shares to them.
General reserve
Pursuant to the provisions of Companies Act,1956, the Company had transferred a portion of the net profit of the Company
before declaring dividend, to general reserve. Mandatory transfer to general reserve is not required under the Companies
Act, 2013.
Share options outstanding account

The grant date fair value of equity-settled share-based payment transactions with employees and directors are recognised in
the Statement of Profit and Loss with the corresponding credit to this account over the vesting period. The amounts recorded
in Share options outstanding account are transferred to securities premium upon exercise of stock options by the employees
and subsequent allotment of shares to them.
Retained earnings
Retained earnings are the profits that a company has earned to date, less any dividends or other distributions paid to the
Shareholders, net of utilisation as permitted under applicable regulations.
Note 19 Asset Management Services

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Investment Management Fee 2,103.24 1,839.51
Portfolio Management Fee and Other Advisory Services Fee 12.12 13.02
Total 2,115.36 1,852.53


Note 20 Other Income

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Income from Investments
Interest Income from Investments
- On Financial Assets measured at Amortised Cost 31.01 31.43
Interest on deposit with Banks
- On Financial Assets measured at Amortised Cost 0.00 0.00
Net gain on Financial Instruments
- On Financial Assets measured at Amortised Cost - 0.00
- On Financial Assets measured at Fair Value Through Profit and Loss 279.59 308.34
Dividend Income from Investments
- On Financial Assets measured at Amortised Cost - 0.23
- On Financial Assets measured at Fair Value Through Profit and Loss 0.19 0.34
Total Income from Investments (A) 310.79 340.34
Others
Net gain/(loss) on derecognition of Property, Plant and Equipment 0.03 0.04
Net gain/(loss) on Foreign Exchange Transactions 0.06 (0.18)
Other Interest Income 2.57 1.15
Miscellaneous Income 4.39 7.86
Total Others (B) 7.05 8.87
Total Other Income (A+B) 317.84 349.21
Note 21 Employee Benefits Expenses

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Salaries, Allowances and Bonus 234.05 207.97
Contribution to Provident and Other Funds 12.02 10.43
Share-based Payments to Employees* 63.32 7.35
Staff Welfare and Training Expenses 2.81 1.00
Total 312.20 226.75
* Accounting for equity settled share-based payment transaction (ESOPs) at fair value increases the non-cash component of Employee Benefits
Expenses and is also reflected in Share Options Outstanding Account under Other Equity. This balance of Share Options Outstanding Account is
transferred to Securities Premium as and when the stock options are exercised by the employees and subsequent allotment of shares to them. Hence,
this charge is neutral to Equity of the Company.


Note 22 Other Expenses

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
New Fund Offer and Mutual Fund Expenses 15.42 4.02
Advertisement, Publicity and Business Promotion 27.59 14.99
Rent 0.35 0.36
Rates and Taxes 0.54 0.49
Electricity Charges 4.83 4.05
Office Cleaning and Security Cost 17.06 16.76
Repair and Maintenance 5.15 4.91
Communication Expenses 6.05 6.64
Printing, Stationery and Courier 10.20 7.90
Directors' Sitting Fees, Commission, allowances and expenses 3.23 3.56
Auditors Remuneration:
Audit Fee 0.26 0.24
Tax Audit Fee 0.04 0.03
Taxation Matters 0.19 0.16
Reimbursement of Expenses 0.01 0.01
Other Services 0.19 0.17
0.69 0.61
Legal and Professional Fees 6.81 5.72
Insurance Expenses 5.02 3.95
Travel and Conveyance 4.83 2.07
Subscription and Membership Fees 9.58 8.50
Outsourced Services Cost 21.72 22.23
Donations 0.02 0.02
Corporate Social Responsibility expense as per Section 135 (5) of the Companies Act, 2013 30.10 26.99
(see note 32)
Software Expenses 21.18 15.95
KYC Expenses related to Mutual Fund Investors 4.48 2.58
Miscellaneous Expenses 2.96 3.69
Total 197.81 155.99
Note 23 Employee Benefits

a) Defined Contribution Plan
The Company has recognised the following amounts in the Statement of Profit and Loss, which are included under
Contributions to Provident Fund and Other Funds:
H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Employer’s contribution to Provident Fund 6.81 6.09
Employer’s contribution to National Pension System 0.78 -


b) Defined Benefit Plan – Gratuity

In accordance with the applicable Indian laws, the Company has a defined benefit plan which provides for gratuity payments.
The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment,
which requires contributions to be made to a separately administered fund.
The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the
administration of the plan assets and for the definition of the investment strategy.
The amounts are based on the respective employee’s last drawn salary and the years of employment with the Company.
Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes
annual contributions to the plan. The plan is funded with a life insurance company in the form of a qualifying insurance policy.
The following tables summaries the components of net employee benefit expense recognised in the Statement of Profit
and Loss, the funded status and amounts recognised in Balance Sheet.
(i) Changes in Present Value of the Defined Benefit Obligation

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Obligation as at beginning of the year 37.20 36.14
Current service cost 3.71 3.48
Interest cost 2.44 2.47
Benefits paid (3.37) (4.96)
Actuarial (gains)/losses on obligation – due to change in demographic assumptions 0.23 0.14
Actuarial (gains)/losses on obligation – due to change in financial assumptions (2.76) (0.01)
Actuarial (gains)/losses on obligation – due to experience adjustments 0.87 (0.06)
Obligation as at the end of the year 38.32 37.20
(ii) Change in the Fair Value of Plan Assets

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Fair Value of Plan Assets at the beginning of the year 32.31 29.05
Expected return on plan assets 2.12 1.98
Contributions by the Employer 4.88 7.09
Benefit Paid from the Fund (3.37) (4.96)
Actuarial gain/(loss) on plan assets (1.00) (0.85)
Fair Value of Plan Assets at the end of the year 34.94 32.31
(iii) Actual Return on Plan Assets

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Expected return on Plan Assets 2.12 1.98
Actuarial gain/(loss) on Plan Assets (1.00) (0.85)
Actual Return on Plan Assets 1.12 1.13


(iv) Amount recognised in the Balance Sheet

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Present Value of defined benefit obligation (38.32) (37.20)
Fair Value of Plan Assets 34.94 32.31
Funded status [surplus/(deficit)] (3.38) (4.89)
Net (Liability)/Asset recognised in the Balance Sheet (3.38) (4.89)
(v) Expenses recognised in the Statement of Profit and Loss

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Current service cost 3.71 3.48
Interest Cost 2.44 2.47
Expected Return on Plan Assets (2.12) (1.98)
Expenses recognised in the Statement of Profit and Loss 4.03 3.97
(vi) Expenses recognised in Other Comprehensive Income (OCI)

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Actuarial (gains)/losses on Obligation (1.66) 0.07
Actuarial (gains)/losses on Plan Assets 1.00 0.85
Net (income)/expense for the year recognised in OCI (0.66) 0.92
(vii) Amount recognised in the Balance Sheet

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Liability at the end of the year 38.32 37.20
Fair Value of Plan Assets at the end of the year (34.94) (32.31)
Amount recognised in the Balance Sheet as Liability 3.38 4.89
(viii) Balance sheet reconciliation

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Net Liability as at the beginning of the year 4.89 7.09
Expenses recognised in the Statement of Profit and Loss 4.03 3.97
Expenses/(Income) recognised in OCI (0.66) 0.92
Contributions by the Employer (4.88) (7.09)
Net Liability/(Asset) recognised in Balance Sheet 3.38 4.89


(ix) Investment Pattern

% Invested
As at As at
Particulars
March 31, 2022 March 31, 2021
Money Market Instruments, Public Deposits and Net Current Assets 13.52 100
Government Securities and Corporate Bonds 86.48 -
(x) Actuarial Assumptions

As at As at
Particulars
March 31, 2022 March 31, 2021
Expected Return on Plan Assets 7.15% 6.57%
Rate of Discounting 7.15% 6.57%
Rate of Salary Increase 5.00% p.a. for 5.00% p.a. for the
the next next 1 year, 7.00%
1 year, 7.00% p.a. thereafter,
p.a. thereafter, starting from the
starting from the 2nd year
2nd year
Rate of Employee Turnover For service 4 7.00% p.a.
years and below for the next 1
14.71% p.a. year, 10.00%
For service p.a. thereafter,
5 years and above starting from the
5.17% p.a. 2nd year
Mortality Rate During Employment Indian Assured Indian Assured
Lives Mortality Lives Mortality
2012-14 (Urban) (2006-08)
(xi) The Company generally makes annual contributions to the plan based on the actuarial valuation of ‘amount recognised
in the Balance Sheet as Liability at the year end’.
(xii) The expected contributions to the plan for the next annual reporting period
H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
The expected contributions to the plan for the next annual reporting period 4.70 4.49
(xiii) Maturity Analysis of the benefit payments

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Projected benefits payable in future years from the date of reporting
1st Following year 2.26 2.55
2nd Following year 2.10 3.57
3rd Following year 2.17 3.69
4th Following year 2.32 3.44
5th Following year 3.09 3.94
Sum of years 6 to 10 18.78 18.00
Sum of years 11 and above 52.32 27.99
The Weighted average duration of the projected benefit obligation is 10 years (March 31, 2021: 8 years).


(xiv) Sensitivity Analysis

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Projected Benefit Obligation on Current Assumptions 38.32 37.20
Delta Effect of +1% Change in Rate of Discounting (3.13) (2.33)
Delta Effect of -1% Change in Rate of Discounting 3.62 2.63
Delta Effect of +1% Change in Rate of Salary Increase 3.59 2.60
Delta Effect of -1% Change in Rate of Salary Increase (3.17) (2.35)
Delta Effect of +1% Change in Rate of Employee Turnover 0.00 (0.12)
Delta Effect of -1% Change in Rate of Employee Turnover 0.00 0.13
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may
be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied
in calculating the Defined Benefit Obligation as recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Risks associated with Defined Benefit Plan:
(i) Interest Rate Risk

A fall in the discount rate which is linked to the G. Sec. Rate will increase the present value of the liability requiring higher
provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the
duration of asset.
(ii) Salary Risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As
such, an increase in the salary of the members more than assumed level will increase the plan’s liability.
(iii) Investment Risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below
this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in
government securities and other debt instruments.
(iv) Asset Liability Matching (ALM) Risk

The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax
Rules, 1962, this generally reduces ALM risk.
(v) Mortality Risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have
any longevity risk.


(vi) Concentration Risk

Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe
out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory
guidelines which mitigate risk.
During the year, there were no plan amendments, curtailments and settlements.
Note 24 Share-based payments

Accounting for Employee Share-based Payments
Under Employees Stock Option Scheme 2020 (ESOS 2020), the Company had on January 24, 2022 granted 1,82,000 stock
options, representing 1,82,000 equity shares of `5/- each to few employees of the Company. The said stock options have been
granted at the market price as defined in SEBI (Share-based Employees Benefits) Regulations, 2014. Accordingly, the stock
options have been granted at `2,369.40 per option, being the latest available closing price of the shares of the Company on
National Stock Exchange of India Limited, on January 21, 2022 being the previous trading day immediately preceding the date
on which Grant of Options was approved by the Nomination & Remuneration Committee of the Board of Directors of the
Company (‘Nomination & Remuneration Committee’).
Under ESOS 2020, the Company had on February 22, 2021 granted 11,45,000 stock options, representing 11,45,000 equity
shares of `5/- each to few employees of the Company. The said stock options have been granted at the market price as defined
in SEBI (Share-based Employees Benefits) Regulations, 2014. Accordingly, the stock options have been granted at `2,934.25
per option, being the latest available closing price of the shares of the Company on National Stock Exchange of India Limited,
on February 19, 2021 being the previous trading day immediately preceding the date on which Grant of Options was approved
by the Nomination & Remuneration Committee.
In terms of ESOS 2020, the options shall vest in three tranches. Each of these tranches consisting of 1/3 of the options granted
shall vest on the completion of the 1st, 2nd and 3rd year from the date of the grant respectively. Any fractional residue shall be
settled in the 3rd tranche. The options can be exercised over a period of five years from the date of respective vesting.
Under Employees Stock Option Scheme 2017 – Series II (ESOS 2017 – Series II), the Company had on January 17, 2018 granted
6,0 0 0 stock options at an exercise price of `7,936/- per option, representing 6,000 equity shares of `10/- each to few employees
of the Company. The fair value of the Company’s underlying equity share was determined in accordance with the pricing formula
approved by the Nomination & Remuneration Committee i.e. based on the Price Earning Multiple method and the Assets Under
Management (AUM) method.
In terms of ESOS 2017 – Series II, the options vest over a period of 1-2 years from the date of grant. The options can be exercised
over a period of five years from the date of vesting.
Under Employees Stock Option Scheme 2017 – Series I (ESOS 2017 – Series I), the Company had on July 28, 2017 granted
1,58,875 stock options at an exercise price of `5,353/- per option, representing 1,58,875 equity shares of `10/- each to few
employees & directors of the Company. The fair value of the Company’s underlying equity share was determined in accordance
with the pricing formula approved by the Nomination & Remuneration Committee i.e. based on the Price Earning Multiple
method and the Assets Under Management (AUM) method.
In terms of ESOS 2017 – Series I, the options vest over a period of 1-2 years from the date of grant. The options can be exercised
over a period of five years from the date of vesting.
Under Employees Stock Option Scheme 2015 – Series I (ESOS 2015 – Series I), the Company had on December 10, 2015 granted
10,00,000 stock options at an exercise price of `3,944/- per option, representing 10,00,000 equity shares of `10/- each to few
employees & directors of the Company. The fair value of the Company’s underlying equity share was determined in accordance
with the pricing formula approved by the Nomination & Remuneration Committee i.e. based on the Price Earning Multiple
method and the Assets Under Management (AUM) method.


In terms of ESOS 2015 – Series I, the options vest over a period of 1-2 years from the date of grant. The options can be exercised
over a period of three years from the date of vesting.
Pursuant to the terms of respective Employees Stock Option Schemes (ESOS), in case of a corporate action like bonus shares,
rights issue, buyback of shares, split of shares, reduction of capital etc., the number of options outstanding as at the date of
the corporate action and the exercise price under all the relevant ESOS shall stand modified accordingly, so as to ensure that
the paid-up value of the total shares that can be issued under them remains unchanged. Accordingly, the Nomination
and Remuneration Committee of the Company has resolved, vide its circular resolution passed in February 2018, to make
appropriate adjustments to the outstanding options and now each option represents one equity share of `5/- each.
Comparison of exercise price per option:

H
Post corporate
Name of the Series Pre corporate action
action
ESOS 2015 Series I 3,944.00 493.00
ESOS 2017 Series I 5,353.00 669.13
ESOS 2017 Series II 7,936.00 992.00
Modifications, if any made to the terms and conditions of Employees Stock Option Schemes (ESOS), as approved by the
Nomination & Remuneration Committee are disclosed separately.
The number of options vested during the year were 354,999 (Previous Year: Nil).
The number of options vested and forfeited/expired (after vesting) during the year were Nil (Previous Year: Nil).
Movement in the options under ESOS 2015:

No. of Options
Particulars March 31, 2022 March 31, 2021
ESOS 2015 ESOS 2015
Series I Series I
Outstanding at the beginning of the year* 80,000 80,000
Granted during the year* Nil Nil
Exercised during the year* 80,000 Nil
Forfeited during the year* Nil Nil
Outstanding at the end of the year* Nil 80,000
Exercisable at the end of the year* Nil 80,000
For options outstanding at the end of the year:
Exercise price per option (`) - 493.00
Weighted average remaining contractual life (no. of years) - 0.69



No. of Options
For the year ended March 31, 2022 For the year ended March 31, 2021
Particulars
ESOS 2017 ESOS 2017
Series I Series II Series I Series II
Outstanding at the beginning of the year* 4,17,098 32,900 5,56,875 44,000
Granted during the year* Nil Nil Nil Nil
Exercised during the year* 2,11,450 32,900 1,39,777 11,100
Forfeited during the year* Nil Nil Nil Nil
Outstanding at the end of the year* 2,05,648 Nil 4,17,098 32,900
Exercisable at the end of the year* 2,05,648 Nil 4,17,098 32,900
Exercise price per option (`) 669.13 - 669.13 992.00
Weighted average remaining contractual life (No. of years) 1.32 - 2.32 2.80

No. of Options
For the year ended For the year ended For the year ended
Particulars March 31, 2022 March 31, 2021 March 31, 2022
Grant Date Grant Date Grant Date
February 22, 2021 February 22, 2021 January 24, 2022
Outstanding at the beginning of the year* 11,45,000 Nil Nil
Granted during the year* Nil 11,45,000 1,82,000
Exercised during the year* Nil Nil Nil
Forfeited during the year* 80,000 Nil Nil
Outstanding at the end of the year* 10,65,000 11,45,000 1,82,000
Exercisable at the end of the year* 3,54,999 Nil Nil

Exercise price per option (`) 2,934.25 2,934.25 2,369.40
Weighted average remaining contractual life (No. of years) 5.90 6.90 6.82
* Since all the options were granted at the same exercise price per option under the respective Series/Grant, the weighted average exercise price per
option for all these groups under the respective Series/Grant is the same.
The weighted average share price for options exercised during the year under various Series’/Grants was `2,687 (Previous
Year: `2,408)
Fair value methodology

The fair value of options used to compute net income and earnings per equity share has been estimated on the date of grant
using Black-Scholes model.


The key assumptions used in Black-Scholes model for calculating fair value under ESOS 2015 – Series I, ESOS 2017 – Series I,
ESOS 2017 – Series II and ESOS 2020 as on the date of grant were:
Particulars ESOS 2015 – Series I ESOS 2017 – Series I ESOS 2017 – Series II
Date of grant December 10, 2015 July 28, 2017 January 17, 2018
Risk-free interest rate 7.18% p.a. 6.66% p.a. 6.97% p.a.
Expected average life 2.5 years 3.5 years 3.5 years
Expected volatility 0% 0% 40.67%
Dividend yield 1.77% p.a. 1.86% p.a. 1.86% p.a.
Fair value of the option `478 `777 `2,726
Fair value of the option after corporate action `60 `97 `341
ESOS 2020 ESOS 2020

Particulars (Grant Date (Grant Date
February 22, 2021) January 24, 2022)
Date of grant February 22, 2021 January 24, 2022
Risk-free interest rate 5.04% - 5.66 % p.a. 5.34% - 5.98 % p.a.
Expected average life 3.5 - 5.5 years 3.5 - 5.5 years
Expected volatility 36.10% - 37.08% 33.91% - 35.52%
Dividend yield 0.84% p.a. 0.92% p.a.
Weighted Average Fair value of the option `1,053 `826
Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during a period. The measure of
volatility used in the Black–Scholes Model is the annualised standard deviation of the continuously compounded rates of return
on the stock over a period of time.
As on the date of grant, in case of schemes ESOS 2015–Series I and ESOS 2017–Series I, the Company being an unlisted company
and in the absence of listed comparable companies, volatility had been considered to be NIL.
As on the date of grant in case of ESOS 2017–Series II, the sector had only one listed stock which was listed during that year. The
volatility derived from this stock had been annualised for the purpose of this valuation.
As on the date of grant in case of ESOS 2020 (Grant Date February 22, 2021 and Grant Date January 24, 2022), the trading
history of the Company and its comparable company(s) listed on the Stock exchange are less than the life of the option. Hence,
Nifty Financial Services Index is also considered for deriving the volatility.
Details of modifications in terms and conditions of ESOS:

No modifications were made in the terms and conditions of ESOS during the current year. The Nomination & Remuneration
Committee at its meeting held on July 20, 2016 had approved few modifications, viz. change in nomenclature of Employees
Stock Option Scheme 2015 (ESOS 2015) to Employees Stock Option Scheme 2015 – Series I (ESOS 2015 – Series I) and change in
the period over which, the options granted under ESOS 2015 – Series I can be exercised from the date of their respective vesting.
By virtue of the said modifications, the options granted under ESOS 2015 – Series I can now be exercised over a period of five
years from the date of respective vesting. There was no change in any other parameters of the scheme.
The options thus modified have been fair valued as at July 20, 2016, being the modification date. The key assumptions considered
in the pricing model for calculating fair value under ESOS 2015 – Series I as on the date of modification were:


ESOS 2015 – Series I

Particulars
Original Terms Modified Terms
Risk-free interest rate 6.60% p.a. 6.70% p.a.
Expected average life 1.89 years 2.89 years
Expected volatility 0% 0%
Dividend yield 1.80% p.a. 1.80% p.a.
Fair value of the option `511 `672
Fair value of the option after corporate action `64 `84
The incremental share-based compensation determined under fair value method amounts to `161 (`20 post corporate
action) per option under ESOS 2015 – Series I. The incremental fair value granted is taken into consideration for the purpose of
computing the net income and earnings per equity share.
Note 25 Tax expense

Components of Income Tax Expense
(a) Amounts recognised in the Statement of Profit and Loss

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Current income tax 418.96 369.39
418.96 369.39
Deferred tax (Income)/expense
Origination and reversal of temporary differences 43.20 53.80
43.20 53.80
Income Tax expense for the year 462.16 423.19
(b) Tax on amounts recognised in Other Comprehensive Income

H (in Crore)
Tax (expense)/benefit
Particulars For the year ended For the year ended
March 31, 2022 March 31, 2021
Remeasurement of the defined benefit plans (0.17) 0.23
Total (0.17) 0.23


(c) Reconciliation of Effective Tax Rate

H (in Crore)
Reconciliation between the statutory Income tax rate applicable to the Company and the effective Income tax For the year ended For the year ended
rate of the Company March 31, 2022 March 31, 2021
Profit before tax 1,855.29 1,748.95
Company's domestic tax rate 25.17% 25.17%
Tax using the Company’s domestic tax rate 466.94 440.18
Tax effect of/on:
Net expenses that are not deductible in determining taxable profit 23.52 8.54
Items which are taxed at different rates (20.76) (17.81)
Incomes which are exempt from tax (7.80) (7.91)
Others 0.26 0.19
Total (4.78) (16.99)
Income Tax expense for the year 462.16 423.19
(d) Effective Tax Rate

Particulars
March 31, 2022 March 31, 2021
Effective Tax Rate (%) 24.91 24.20
(e) Significant components and movement in deferred tax assets and liabilities:
H (in Crore)
As at Expense/(Income) As at
Particulars
April 01, 2021 recognised March 31, 2022
Deferred Tax Assets
- Property, Plant and Equipment & Other Intangible Assets (excluding ROU) 8.26 (1.31) 9.57
- Lease Liabilities 30.09 2.50 27.59
- Provision for Employee Benefits 1.98 (0.98) 2.96
- Others 1.24 (0.03) 1.27
Total Deferred Tax Assets 41.57 0.18 41.39
Deferred Tax Liabilities
- Right of Use Asset 27.36 (2.65) 24.71
- Prepaid Employee Benefits 3.01 (0.95) 2.06
- Fair value gains/losses and impairment on Investments 42.74 45.91 88.66
- Others 0.59 0.71 1.30
Total Deferred Tax Liabilities 73.70 43.02 116.73
Net Deferred Tax Assets/(Liabilities) (32.13) 43.20 (75.34)


H (in Crore)
As at Expense/(Income) As at
Particulars
April 01, 2020 recognised March 31, 2021
Deferred Tax Assets
- Property, Plant and Equipment & Other Intangible Assets (excluding ROU) 7.69 (0.57) 8.26
- Lease Liabilities 29.62 (0.47) 30.09
- Provision for Employee Benefits 1.82 (0.16) 1.98
- Others 1.27 0.03 1.24
Total Deferred Tax Assets 40.40 (1.17) 41.57
Deferred Tax Liabilities
- Right of Use Asset 26.85 0.51 27.36
- Prepaid Employee Benefits - 3.01 3.01
- Fair value gains/losses and impairment on Investments (8.78) 51.52 42.74
- Others 0.66 (0.07) 0.59
Total Deferred Tax Liabilities 18.73 54.97 73.70
Net Deferred Tax Assets/(Liabilities) 21.67 53.80 (32.13)
Note: The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities
and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
Significant management judgement is required in determining provision for income tax, deferred tax assets and liabilities and recoverability of deferred
tax assets. The recoverability of deferred tax assets is based on estimates of taxable income and the period over which deferred tax assets will be
recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.
Note 26 Related Party Transactions

As per the Indian Accounting Standard on ‘Related Party Disclosures’ (Ind AS 24), the related parties of the Company with whom there have been
transactions during the current/previous year, are as follows:
Sr.
Relationship Name of the Parties
No.
1 Holding Company Housing Development Finance Corporation Limited
2 Fellow Subsidiaries HDFC Trustee Company Limited
HDFC Life Insurance Company Limited
HDFC ERGO General Insurance Company Limited
3 Investor with a significant influence Abrdn Investment Management Limited (formerly known as Standard Life Investments
Limited)
4 Other Related Parties HDFC Bank Limited
HDFC Securities Limited
HDFC Asset Management Company Limited Employees’ Group Gratuity Assurance
Scheme


Sr.
Relationship Name of the Parties
No.
5 Key Managerial Personnel (KMP) Deepak S. Parekh
Milind Barve (up to February 15, 2021)
Navneet Munot (from February 16, 2021)
Keki Mistry
Dhruv Kaji
Jairaj Purandare
Sanjay Bhandarkar
Parag Shah
Renu S. Karnad
Roshni Nadar Malhotra
Shashi Kant Sharma
6 Key Managerial Personnel of Holding Company V. Srinivasa Rangan
(except covered in Sr. No. 5) Jamshed Jiji Irani
7 Relatives of Company's Key Managerial Smita Deepak Parekh
Personnel and Holding Company's Key Aditya Deepak Parekh
Managerial Personnel
Harsha Shantilal Parekh
Arnaaz Keki Mistry
Bharat Karnad
Ashok Sud
V. Jayam
S. Anuradha
Abinaya Rangan
Malav Ashwin Dani
During the year ended March 31, 2021, Mr. Milind Barve’s term as the Managing Director came to an end on February 15, 2021
and he ceased to be a Director of the Company. Mr. Navneet Munot who was appointed as a successor to Mr. Barve, joined the
Company as the Managing Director & Chief Executive Officer effective February 16, 2021.

The nature and volume of transactions of the Company during the current/previous year with the above related parties were as follows:
(a) Details of transactions
H (in Crore)
Investor with a Significant
Holding Company Fellow Subsidiaries Other Related Parties
Notes
Influence
Particulars
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2022 2021 2022 2021 2022 2021 2022 2021
Income
Management Fees - - - - - 0.45 - -
Expense
Lease Rent 11.98 12.28 - - - - - -
Bank Charges - - 0.00 0.00 - - 0.01 0.00

Fees and Commission - - - - - - 0.06 0.07
Technology Support Cost 2.12 2.21 - - - - - -
Administration & Other Expenses 1.98 1.67 0.04 - - - - -
Insurance Premium - - 2.74 2.15 - - - -
Custodian Charges - - - - - - 0.09 0.05
Other Transactions
Equity Dividend 381.41 314.10 - - 153.78 126.64 - -
Contribution towards Gratuity Fund - - - - - - 4.88 7.09
Asset
Bank Balances - - - - - - 7.82 2.18
Account Receivable - - 2.61 0.70 - - - -
Prepaid Commission - - - - - - 0.00 0.00

Prepaid administrative & other expenses - - - - -
Prepaid Insurance Premium - - 0.06 1.82 - - - -
Liability
Account Payable 0.93 0.71 0.03 - - - 0.10 0.11
Notes:
(i) During the FY 2019-20, HDFC AMC had entered into an agreement with Holding company for using the Trademark of Holding company wherein no consideration
is required to be paid. The said agreement does not envisage a specific sum of monies to be paid as fees at present, which is consistent with the practice followed
for the last 20 years, based on the reciprocity of benefits to both parties to the transaction.
(ii) The Company provides the necessary operating and secretarial services, etc. to HDFC Trustee Company Limited to meet the operating and compliance
requirements of the Company in line with SEBI (Mutual Funds) Regulations, 1996. The Company does not charge any amount in line with practice followed by the
mutual fund industry.

175

(b) Details of remuneration to Company’s KMPs

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Short-term employee benefits # 11.63 9.94
Post employment benefits 0.26 0.27
Other long-term benefits 0.07 0.19
Share-based payment 46.74 5.13
Other Benefits 0.03 0.01
Directors Sitting Fees 1.43 1.76
Commission to Non Executive Directors * 1.80 1.80
Total Remuneration 61.96 19.10
#
During the FY 20-21, an amount of `12.46 Crore was paid to the incoming Managing Director as one time payment and the same is being amortised
as per the terms of the contract. Out of the same, `4.15 Crore (Previous Year: `0.50 Crore) forms part of Short-term employee benefits above and the
balance unamortised amount of `7.81 Crore (Previous Year: `11.96 Crore) as at March 31, 2022 is booked as prepaid under Other Non-Financial Assets.
* Commission is approved by the Board of Directors within the limit as approved by the shareholders of the Company and will be paid post adoption of
annual accounts by the shareholders.
(c) Details of dividend paid to Company’s KMPs

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Dividend on Equity Shares 1.69 4.31
(d) Details of dividend paid to relatives of Company’s KMPs, Holding Company’s KMPs and relatives of Holding
Company’s KMPs
H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Dividend on Equity Shares 0.01 0.01
Note 27 Earnings Per Share

Basic earnings per share (EPS) is calculated by dividing the profit after tax for the year attributable to equity shareholders of
company by the weighted average number of equity shares outstanding during the year.
Diluted EPS is calculated by dividing the profit after tax for the year attributable to equity shareholders of the Company by the
weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that
would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
The relevant details as described above are as follows:
` (in Crore except equity share data)
Particulars
March 31, 2022 March 31, 2021
Profit after tax for the year 1,393.13 1,325.76
Weighted Average equity shares outstanding during the year 21,31,32,019 21,28,84,193


Following is the reconciliation between basic and diluted earnings per equity share:
`
Particulars
March 31, 2022 March 31, 2021
Nominal value per share 5.00 5.00
Basic earnings per share 65.36 62.28
Effect of potential equity shares for stock options (per share) (0.05) (0.12)
Diluted earnings per share 65.31 62.16

Particulars
March 31, 2022 March 31, 2021
Weighted average number of equity shares used in computing basic earnings per equity share 21,31,32,019 21,28,84,193
Effect of potential equity shares for stock options outstanding 1,54,673 3,95,477
Weighted average number of equity shares used in computing diluted earnings per equity share 21,32,86,692 21,32,79,670
Weighted average number of anti dilutive options not considered in computing diluted earnings per 2,80,446 59,955
equity share
Note 28 Leases
A. The Company has entered into leasing arrangements for premises. Majority of the leases are cancellable by the Company.
Right of Use asset has been included under the line ‘Property, Plant and Equipment’ and Lease liability has been included
under ‘Other Financial Liabilities’ in the Balance Sheet.
(i) Amounts recognised in the Balance sheet

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
(a) Right of Use assets (net) (Property, Plant and Equipment) 98.16 108.70
(b) Lease liabilities
Current 24.19 32.02
Non-current 85.43 87.53
Total Lease liabilities 109.62 119.55
H (in Crore)
Particulars
March 31, 2022 March 31, 2021
(c) Additions to the Right of Use assets 25.18 44.06
(ii) Amounts recognised in the Statement of Profit and Loss

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
(a) Depreciation charge for Right of Use assets 35.25 34.74
(b) Interest expense (included in finance cost) 8.64 8.95
(c) Expense relating to short-term leases 0.35 0.35


(iii) Cash Flows

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
The total cash outflow of leases 42.46 42.07
(iv) Future Commitments

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Future undiscounted lease payments to which leases is not yet commenced 3.16 -
(v) Maturity analysis of undiscounted lease liability

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Less than 1 year 31.55 39.92
More than 1 year 101.21 105.46
Total 132.76 145.38
(vi) All the future cash flows to which the lessee is potentially exposed are reflected in the measurement of lease
liabilities.
(vii) The Company currently does not have any significant sale and lease back transactions.
B. Finance Lease
(i) The Company has provided vehicles to its certain employees which have been treated as finance leases.
H (in Crore)
Quantitative Disclosures
March 31, 2022 March 31, 2021
Selling profit/(loss) (0.02) 0.16
Finance income on the net investment in the lease 0.20 0.13
Lease income relating to variable lease payments not included in the measurement of the net - -
investment in the lease
(ii) Significant changes in the carrying amount of the net investment in the lease
H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Lease receivables as at the beginning of the year 1.58 1.71
Add: Finance income on the net investment in the lease 0.20 0.13
Add: New leases entered during the year 3.60 0.82
Less: Lease payments received during the year 1.33 1.08
Lease receivables as at the end of the year 4.05 1.58


(iii) The following table sets out a maturity analysis of lease receivables:-
H (in Crore)
As at As at
Maturity Analysis of the Lease payments Receivables
March 31, 2022 March 31, 2021
Minimum Lease Minimum Lease
Particulars payments payments
receivables receivables
Less than one year 1.46 0.74
One to two years 1.36 0.52
Two to three years 1.19 0.36
Three to four years 0.67 0.16
Four to five years - -
More than five years - -
Total undiscounted lease payments receivable 4.68 1.78
Less: unearned finance income 0.63 0.20
Present value of lease receivables * 4.05 1.58
* Present Value of Rentals represent the Current Future Outstanding Principal
(iv) Risk Management Framework for finance leases

The table represents categories of collaterals available against the finance lease exposures:
H (in Crore)
As at As at
Particulars Collateral available
March 31, 2022 March 31, 2021
Finance lease receivables Hypothecation of 4.05 1.58
the underlying car
financed
The Company has framed Car Policy to provide use of the Company owned car for the commute from residence to
workplace, for the discharge of their official functions and for personal use to certain selected employees of the Company.
As per the Car Policy of the Company, the car is registered in the name of the Company and will remain the property of the
Company till it is duly transferred to employee in accordance with the Car Policy and after recovery of all lease receivables.
In case of separation of employee from the Company, outstanding lease receivables are recovered/adjusted from
employee’s full and final settlement in accordance with the Car Policy.
Note 29 Segment Information

(a) Description of segments and principal activities
The Company is in the business of providing asset management services to HDFC Mutual Fund and portfolio management
& advisory services to clients. The primary segment is identified as asset management services. As such, the Company’s
financial statements are largely reflective of the asset management business and accordingly there are no separate
reportable segments as per Ind AS 108, Operating Segment.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker (CODM). The CODM’s function is to allocate the resources of the entity and assess the performance of the
operating segment of the Company.


(b) Segment Revenue

The amount of its revenue from external customers broken down by location of the customers is shown in the table below:
H (in Crore)
Revenue
March 31, 2022 March 31, 2021
Within India 2,105.77 1,842.19
Outside India 9.59 10.34
Total 2,115.36 1,852.53
(c) All assets of the Company are domiciled in India.
(d) Information about revenue from major customers

There is only one customer contributing in excess of 10% of the total revenue of the Company. The amounts for the same
are as follows:
H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Revenue from HDFC Mutual Fund 2,103.24 1,839.51
Note 30 Contingent Liabilities and Commitments

H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
(a) Contingent liabilities not provided for:
Disputed Income Tax demand 7.90 5.50
(b) Estimated amount of contracts remaining to be executed on capital account and not provided for 59.86 29.96
(net of advances)
Note 31 Trade Payables

Trade Payables do not include any amount payable to Small Scale Industrial Undertakings and Micro, Small and Medium
Enterprises. Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMEDA) which came into force from
October 02, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis
of the information and records available with the management, the following disclosures are made for the amounts due to the
Micro, Small and Medium enterprises, which have registered with the competent authorities.
H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Principal amount remaining unpaid to any supplier as at the year end Nil Nil
Interest due thereon Nil Nil
Amount of interest paid by the Company in terms of Section 16 of the MSMEDA, along with the amount Nil Nil
of the payment made to the supplier beyond the appointed day during the accounting year
Amount of interest due and payable for the year of delay in making payment (which have been paid but Nil Nil
beyond the appointed day during the year) but without adding the interest specified under the MSMEDA
Amount of interest accrued and remaining unpaid at the end of the accounting year Nil Nil
Dues to Micro, Small and Medium Enterprises have been determined on the basis of information collected by the Company.



Note 32 Corporate Social Responsibility (CSR) Expense

The gross amount required to be spent by the Company during the year towards Corporate Social Responsibility as per Section
135(5) of the Companies Act, 2013 is as follows:
H (in Crore)
Particulars
March 31, 2022 March 31, 2021
(i) Gross amount required to be spent by the Company during the year 30.10 26.99
(ii) Amount to be set off out of Pre-Spent balance (as approved by the Board of Directors) 1.07 -
(iii) Amount approved by the Board to be spent during the year 29.03 28.06
(iv) Amount spent

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Amount spent during the year on construction/acquisition of any asset - -
Amount spent during the year on purposes other than construction/acquisition of any asset and 30.10 26.99
charged to the Statement of Profit and Loss*
*Includes `5.24 Crore (Previous Year: `16.23 Crore) accrued towards Ongoing CSR Projects as well as `1.07
Crore (Previous Year: Nil) adjusted from CSR Pre-Spent balance
Total 30.10 26.99
(v) Details of CSR Activities for the financial year ended March 31, 2022
a) Details of Ongoing CSR Projects
Organisation Purpose
Indian Cancer Society (for Indian Cancer To promote healthcare by providing financial aid for treatment of underprivileged and low income
Cure Fund Project) patients diagnosed with any curable/early detected cancers through the empanelled hospitals
Deepshikha To promote healthcare by providing financial aid towards operations of buses for cancer patients
Rotary Club of Bombay – Urban Forest To promote environmental sustainability and ecological balance through Urban Forest using Akira
Project Miyawaki technique and rejuvenating the water body part of the project site
b) Details of Other than Ongoing CSR Projects

Head and Neck Cancer Institute of India To promote healthcare by providing financial aid for the setup of Head and Neck Cancer Institute
in Byculla, Mumbai.
Doctors For You To promote health care including preventive health care by providing financial aid for vaccination
camps.
Aroehan To promote environmental sustainability by creating water structures that will enhance the water
storage capacity in Palghar district.
Rotary Club of Bombay – Water Lifting To promote environmental sustainability by providing water availability in Palghar district that is
at Palghar plagued with extreme water scarcity.
Olympic Gold Quest To promote sports by providing training to nationally recognised paralympic and olympic sports.
Ashoka University To promote education by supporting the construction of infrastructure such as building lecture
theatres.
Parivaar Seva Kutirs in Madhya Pradesh To eradicate malnutrition and promote education for children by establishing Seva Kutirs
in the villages of Madhya Pradesh. The Funds would be utilised towards the operation of 60
Seva Kutirs.


Snehalaya To promote education by supporting a educational programme for underprivileged children.
Muktangan To promote education by supporting a holistic educational programme designed for children
through community participation.
Sampark Foundation To improve education in schools and to make the learning process enjoyable and easy. It is the
goal of this strategic partnership to solve this unsolved problem in the state of Jharkhand in
classes 1 to 5 over the years.
(vi) Details of CSR Activities for the financial year ended March 31, 2021
a) Details of Ongoing CSR Projects
Indian Cancer Society (for Indian Cancer To provide financial aid for treatment to underprivileged and low income patients diagnosed
Cure Fund Project) with any curable/early detected cancers through the empanelled hospitals as per the proposal
submitted.
Parivaar Education Society To provide nutritional and education aid to children by establishing Seva Kutirs in the villages of
Madhya Pradesh. The Funds would be utilised towards operation of 20 Seva Kutirs.
The Bombay Scottish Orphanage Restoration and Refurbishment of the premises of Bombay Scottish School, Mahim for restoration
Society of heritage site and to improve the infrastructure of the school which would facilitate better
teaching facilities and atmosphere and also considering the safety of the students as the building
structure is very old.
b) Details of Other than Ongoing CSR Projects
Indian Cancer Society (for Indian Cancer To provide financial aid for treatment to underprivileged and low income patients diagnosed with
Cure Fund Project) any curable/early detected cancers through the empanelled hospitals.
Prime Minister’s Citizen Assistance and To provide relief to those affected by any kind of emergency or distress situation such as that
Relief in Emergency Situations Fund posed by COVID-19 pandemic.
(PM – CARES Fund)


(vii) Contribution for Corporate Social Responsibility (CSR)

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Opening Balance:
- With Company 16.23 -
- In Separate CSR Unspent A/c - -
Amount Transferred in Separate CSR Unspent A/c during the year
- From balance with the Company 16.23 -
- From CSR Pre-Spent balance 1.07 -
- To Separate CSR Unspent A/c 17.30 -
Amount required to be spent during the year as per Section 135 (5) of the Companies Act, 2013 30.10 26.99
Amount spent during the year:
- From Company's bank A/c 23.79 10.76
- From Separate CSR Unspent A/c 11.80 -
Closing Balance:
- With Company (excludes an amount in Previous Year of `1.07 Crore booked as 'CSR Pre-Spent' 5.24 16.23
as approved by the Board of Directors of the Company)
- In Separate CSR Unspent A/c 5.50 -
(viii) Excess amount spent

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Opening Balance 1.07 -
Amount required to be spent during the year 30.10 26.99
Amount Adjusted from CSR Pre-Spent balance 1.07 -
Amount spent during the year, (net of adjustment from Pre-Spent balance) 29.03 28.06
[including an amount of ` Nil (Previous Year: `1.07 Crore) booked as 'CSR Pre-Spent', as approved
by the Board of Directors of the Company]
Closing Balance * - 1.07
* Until year ended March 31, 2020 any amount spent in excess of the prescribed limit was not allowed to be carried forward. Based on the amendment
in Companies (Corporate Social Responsibilities Policy) Rules, 2014, with effect from the year ended March 31, 2021, such amount spent in excess
of the prescribed limit can be adjusted against future spends up to three financial years. Accordingly, any excess amount spent is accounted as CSR
Pre-Spent under Other Non-Financial Assets.


Note 33 Dividend Paid and Proposed

H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Dividends on equity shares declared and paid during the year:
Final dividend
Paid for the earlier financial year 724.43 595.96
Dividend per share for the earlier financial year (`) 34.00 28.00
Total Dividend paid 724.43 595.96
Dividend on Equity Shares proposed by the Board of Directors for approval at Annual General Meeting
(not recognised as a liability at the respective year end)
Final dividend for the same financial year 895.77 724.04
Dividend per share for the same financial year (`) 42.00 34.00
Note 34 Capital Management

Equity share capital and other equity are considered for the purpose of Company’s capital management. The Company manages
its capital in a manner which enables it to safeguard its ability to continue as a going concern and to optimise returns to the
Shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day
needs with a focus on total equity so as to maintain investor, creditors and market confidence. The funding requirements
are met through operating cash flows and other equity. The management monitors the return on capital and the board of
directors monitors the level of dividends paid to shareholders of the Company. The Company may take appropriate steps in
order to maintain, or if necessary adjust, its capital structure.

Note 35 Financial Instruments
A. Classification and Fair Values of Financial Assets & Liabilities
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair
value hierarchy.
Notes
H (in Crore)
Particulars Carrying Amount Fair Value
Total Carrying
As at March 31, 2022 FVTPL Amortised Cost Level 1 Level 2 Level 3 Total
amount
Financial Assets
Investments in:-
Mutual Funds 4,938.66 - 4,938.66 4,758.57 180.09 - 4,938.66

Debt Securities 6.98 462.93 469.91 - 512.67 6.98 519.65
Equity Instrument in Others 22.85 - 22.85 - - 22.85 22.85
Investment in Alternative 115.70 - 115.70 - - 115.70 115.70
Investment Funds
Investment in Venture Capital 23.11 - 23.11 - - 23.11 23.11
Fund
Trade & Other Receivables* - 80.51 80.51 80.51
Cash and Cash Equivalents* - 1.87 1.87 1.87
Other Bank Balances* - 6.20 6.20 6.20
Other Financial Asset* - 25.20 25.20 25.20
Total 5,107.30 576.71 5,684.01 4,758.57 692.76 168.64 5,733.75
Financial Liabilities
Trade Payables* - 29.24 29.24 29.24

Other Financial Liabilities
Lease Liabilities - 109.62 109.62 111.59 111.59
Others* - 80.02 80.02 80.02
Total Other Financial Liabilities - 189.64 189.64 - 111.59 - 191.61
Total - 218.88 218.88 - 111.59 - 220.85

185
H (in Crore)
186
Particulars Carrying Amount Fair Value
Total Carrying
As at March 31, 2021 FVTPL Amortised Cost Level 1 Level 2 Level 3 Total
amount
Financial Assets
Notes
Investments in:-
Mutual Funds 4,158.41 - 4,158.41 4,000.24 158.17 - 4,158.41
Debt Securities 32.01 490.13 522.14 - 562.84 6.40 569.24
Equity Instrument in Others 0.63 - 0.63 - - 0.63 0.63
Investment in Alternative 61.43 - 61.43 - - 61.43 61.43
Investment Funds
ASPIRE. BELIEVE. ACHIEVE.

Investment in Venture Capital 10.64 - 10.64 - - 10.64 10.64

Fund
Trade & Other Receivables* - 83.76 83.76 83.76
Cash and Cash Equivalents* - 1.68 1.68 1.68

Other Bank Balances* - 0.67 0.67 0.67
Other Financial Asset* - 32.35 32.35 32.35
Total 4,263.12 608.59 4,871.71 4,000.24 721.01 79.10 4,918.81
Trade Payables* - 25.88 25.88 25.88
Other Financial Liabilities
Lease Liabilities - 119.55 119.55 121.43 121.43
Others* - 84.58 84.58 84.58
Total Other Financial Liabilities - 204.13 204.13 - 121.43 - 206.01
Total - 230.01 230.01 - 121.43 - 231.89

*Fair value of cash and cash equivalents, bank balances, trade & other receivables, other financial assets, trade payables and other financial liabilities approximate their
carrying amounts largely due to current maturities of these instruments. Accordingly, fair value hierarchy for these financial instruments have not been presented
above.
For the purpose of disclosure, quoted price is considered as the fair value of financial assets that are measured at amortised cost. However, they are shown under level
2 in the fair value hierarchy as they are thinly traded.

B. Fair value hierarchy

s per Ind AS 107, ‘Financial Instruments: Disclosures’, the fair values of the financial assets or financial liabilities are defined
A
as the price that would be received on sale of asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable
or unobservable. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and
lowest priority to unobservable inputs.
The hierarchy used is as follows :
Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Investment in open
ended Mutual Funds are included in Level 1.
Level 2 — Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices). Investment in close ended Mutual Funds and Debt
Securities that are not traded in active market are included in Level 2.
Level 3 — Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or
in part using a valuation model based on assumptions that are neither supported by prices from observable
current market transactions in the same instrument nor are they based on available market data. Investment in
unlisted Debt Securities, unlisted Equity Instruments, Alternative Investment Funds and Venture Capital Fund
are included in Level 3.
C. Valuation techniques used to determine fair value

Financial instrument Valuation technique
Mutual Funds Net Asset Value (NAV) declared by the mutual fund at which units are issued or redeemed.
Debt Securities Discounted cash flow based on present value of the expected future economic benefit.
Equity Instruments in Others Discounted cash flow based on present value of the expected future economic benefit and/or price of
recent investment.
Alternative Investment Funds and Net Asset Value (NAV) provided by issuer fund which is arrived at based on valuation from independent
Venture Capital Fund valuer for unlisted portfolio companies, quoted price of listed portfolio companies and price of recent
investments.
Lease Liabilities Discounted cash flows based on present value of expected payments, discounted using a risk-adjusted
discount rate.
In order to assess Level 3 valuations as per Company’s investment policy, the management reviews the performance of the
investee companies (including unlisted portfolio companies of venture capital funds and alternative investment funds) on a
regular basis by tracking their latest available financial statements/financial information, valuation report of independent
valuers, recent transaction results etc. which are considered in valuation process.
The finance department of the Company includes the team that performs the valuation of financial assets and liabilities required
for financial reporting purposes, including level 3 fair value. The team reports directly to the Chief Financial Officer (CFO) of the
Company. Discussions of valuation processes and results are held between the valuation team and the senior management at
least once every three months which is in line with the Company’s quarterly reporting periods.
D. Valuation inputs and relationship to fair value

The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair
value measurement.



Significant Probability
Financial Instrument Sensitivity of input to fair value measurement
unobservable inputs weights/range
Debt Securities Valuation Factor 10% - 20% A 10% increase in the valuation factor would decrease the carrying
value of investment by `0.70 Crore. A 10% decrease in the valuation
factor would increase the carrying value of investment by `0.70 Crore.
Alternative Investment Funds Net Asset Value 0.90x -1.10x A 10% increase in the NAV would increase the carrying value of
(NAV) investment by `10.03 Crore. A 10% decrease in the NAV would
decrease the carrying value of investment by `10.03 Crore.
Venture Capital Fund Net Asset Value 0.90x -1.10x A 10% increase in the NAV would increase the carrying value of
(NAV) investment by `2.31 Crore. A 10% decrease in the NAV would decrease
the carrying value of investment by `2.31 Crore.

Significant Probability
Financial Instrument Sensitivity of input to fair value measurement
unobservable inputs weights/range
Debt Securities Valuation Factor 10% - 20% A 10% increase in the valuation factor would decrease the carrying
value of investment by `0.64 Crore. A 10% decrease in the valuation
factor would increase the carrying value of investment by `0.64 Crore.
Alternative Investment Funds Net Asset Value 0.90x -1.10x A 10% increase in the NAV would increase the carrying value of
Venture Capital Fund Net Asset Value 0.90x -1.10x A 10% increase in the NAV would increase the carrying value of
E. Fair value measurement using significant unobservable inputs (level 3)

The following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values:
H (in Crore)
Investment
Equity Instrument in Investment in
Particulars Debt Securities in Alternative Total
Others Venture Capital Fund
Investment Funds
Balance as at April 01, 2020 31.50 0.36 42.41 11.20 85.47
Net gain/(losses) on Financial 60.50 0.27 7.35 1.00 69.12
Instruments recognised in the
Purchases of Financial Instruments - - 13.41 - 13.41
Sales of Financial Instruments (76.92) - (1.74) (1.56) (80.22)
Transfers out of Level 3 * (8.68) - - - (8.68)
Balance as at March 31, 2021 6.40 0.63 61.43 10.64 79.10
Net gain/(losses) on Financial 0.58 0.05 49.97 12.47 63.07
Instruments recognised in the
Purchases of Financial Instruments - 22.17 17.25 - 39.42
Sales of Financial Instruments - - (12.95) - (12.95)
Balance as at March 31, 2022 6.98 22.85 115.70 23.11 168.64
* The Company holds investments in certain debt securities with fair value of `25.62 Crore as at March 31, 2021. The fair value of these investments
were categorised as Level 3 as at March 31, 2020. This was because of the illiquidity factor applied to the underlying collateral while valuing these
investments. These debt securities matured during the year ended March 31, 2021. As at March 31, 2021, the residual amount of the said debt
securities were categorised as Level 2 as the cash flows were expected from the collaterals which are listed and the collateral attributable to these debt
securities has been sold with minimal impact cost during the FY 2020-21. No illiquidity factor was therefore being considered for the valuation of these
investments.


F. Financial Risk Management

Risk management is an integral part of the business practices of the Company. The Company’s primary focus is to foresee
the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The
financial risks are managed in accordance with the Company’s risk management policy which has been approved by its Board
of Directors. The Company’s Board of Directors has overall responsibility for managing the risk profile of the Company. The
purpose of risk management is to identify potential problems before they occur, so that risk-handling activities may be planned
and invoked as needed to manage adverse impacts on achieving objectives.
The Audit Committee of the Company reviews the development and implementation of the risk management policy of the
Company on periodic basis. The Audit Committee provides guidance on the risk management activities, review the results of
the risk management process and reports to the Board of Directors on the status of the risk management initiatives.
The Company has exposure to the following risks arising from Financial Instruments:
Risk Exposure arising from

Credit Risk Cash and cash equivalents, trade & other receivables, financial assets measured at amortised cost
Liquidity Risk Financial liabilities
Market Risk – Foreign Exchange Recognised financial assets not denominated in `
Market Risk – Interest Rate Investments in debt securities
Market Risk – Price Investments in equity securities, units of mutual funds, debt securities measured at FVTPL, venture capital fund
and alternative investment funds
i. Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations and arises principally from the Company’s trade and other receivables, cash and cash equivalents, and
financial assets measured at amortised cost.
Exposure to credit risk is mitigated through regular monitoring of collections, counterparty’s creditworthiness and
diversification in exposure.
Exposure to credit risk

The carrying amount of financial assets represents maximum amount of credit exposure. The maximum exposure to credit risk
is as per the table below, it being total of carrying amount of cash and cash equivalent, trade and other receivables and financial
assets measured at amortised cost.
H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Maximum exposure to credit risk 576.71 608.59
Expected Credit Loss (ECL) on Financial Assets

The Company continuously monitors all financial assets subject to ECLs. In order to determine whether an instrument is subject
to 12 month ECL (12mECL) or life time ECL (LTECL), the Company assesses whether there has been a significant increase in
credit risk or the asset has become credit impaired since initial recognition. The Company applies following quantitative and
qualitative criteria to assess whether there is significant increase in credit risk or the asset has been credit impaired:
- Historical trend of collection from counterparty
- Company’s contractual rights with respect to recovery of dues from counterparty
- Credit rating of counterparty and any relevant information available in public domain.


ECL is a probability weighted estimate of credit losses. It is measured as the present value of cash shortfalls (i.e. the difference
between the cash flows due to the Company in accordance with contract and the cash flows that the Company expects to
receive).
The Company has three types of financial assets that are subject to the expected credit loss:
- Cash and cash equivalent
- Trade & other receivables
- Investment in debt securities measured at amortised cost.
Trade and Other Receivables

Exposures to customers’ outstanding at the end of each reporting period are reviewed by the Company to determine incurred
and expected credit losses. Historical trends of collection from counterparties on timely basis reflects low level of credit
risk. As the Company has a contractual right to such receivables as well as control over preponderant amount of such funds
due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management
believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical
payment behaviour.
Cash and Cash Equivalents

The Company holds cash and cash equivalents and other bank balances as per note 4 and 5. The credit worthiness of such banks
and financial institutions is evaluated by the management on an ongoing basis and is considered to be high.
Investment in Debt Securities measured at amortised cost

The Company has made investments in tax free bonds. Funds are invested after taking into account parameters like safety,
liquidity and post tax returns etc. The Company avoids concentration of credit risk by spreading them over several counterparties
with good credit rating profile and sound financial position. The Company’s exposure and credit ratings of its counterparties are
monitored on an ongoing basis.
Investment in debt securities that are in tax free government bonds do not carry any credit risk, being sovereign in nature. Credit
risk from other financial assets has not increased significantly since initial recognition. Accordingly, the expected probability of
default is low.
The following tables show reconciliation from the opening to the closing balance of the loss allowance for financial assets
measured at amortised cost.
H (in Crore)
Reconciliation of loss allowance provision LTECL
Loss allowance as at April 01, 2020 * 40.00
Less: Financial asset derecognised (40.00)
Loss allowance as at March 31, 2021 -
Less: Financial asset derecognised -
Loss allowance as at March 31, 2022 -
* Relates to ECL provision on one of the financial instrument where the Company had assessed a significant increase in credit risk which had subsequently
become credit impaired.
ii. Liquidity Risk

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the
Company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash
flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions
is not available to the Company on acceptable terms.


To limit this risk, management has adopted a policy of managing assets with liquidity in mind and monitoring future cash flows
and liquidity on a regular basis. The Company has developed internal control processes for managing liquidity risk.
The Company maintains a portfolio of highly marketable and diverse assets that are assumed to be easily liquidated in the event
of an unforeseen interruption in cash flow. The Company assesses the liquidity position under a variety of scenarios, giving due
consideration to stress factors relating to both the market in general and specifically to the Company.
Exposure to Liquidity Risk

The table below analyses the Company’s financial liabilities into relevant maturity pattern based on their contractual maturities
for all financial liabilities.
H (in Crore)
Contractual Cash Flows
As at March 31, 2022 Carrying amount Total 1 year or less More than 1 year
Trade Payables 29.24 29.24 29.24 -
Lease Liability (remaining contractual maturities) 109.62 132.76 31.55 101.21
Other Financial Liabilities (excluding Lease Liability) 80.02 80.02 80.02 -
Total 218.88 242.02 140.81 101.21
H (in Crore)
Contractual Cash Flows
As at March 31, 2021 Carrying amount Total 1 year or less More than 1 year
Trade Payables 25.88 25.88 25.88 -
Lease Liability (remaining contractual maturities) 119.55 145.38 39.92 105.46
Other Financial Liabilities (excluding Lease Liability) 84.58 84.58 84.58 -
Total 230.01 255.84 150.38 105.46
iii. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument that may result
from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is
exposed to market risk primarily related to currency risk, interest rate risk and price risk.
Currency Risk
The Company has insignificant amount of foreign currency denominated assets. Accordingly, the exposure to currency risk
is insignificant.
Interest Rate Risk

The Company’s investments are primarily in fixed rate interest instruments. Accordingly, the exposure to interest rate risk is
also insignificant.
Price Risk
Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related
market variables including interest rate for investments in debt oriented mutual funds and debt securities, whether caused
by factors specific to an individual investment, its issuer or the market. The Company’s exposure to price risk arises from


investments in equity securities, debt securities, units of mutual funds, venture capital fund and alternative investment funds
which are classified as financial assets at Fair Value Through Profit and Loss and is as follows:
H (in Crore)
As at As at
Particulars
March 31, 2022 March 31, 2021
Exposure to price risk 5,107.30 4,263.12
To manage its price risk from investments in equity securities, debt securities, units of mutual funds, venture capital fund and
alternative investment funds, the Company diversifies its portfolio.
Sensitivity Analysis
The table below sets out the effect on profit or loss and equity due to reasonable possible weakening/strengthening in prices
of 5% :
H (in Crore)
Particulars
March 31, 2022 March 31, 2021
Effect on Profit and Loss
5% increase in the prices 255.37 213.16
5% decrease in the prices (255.37) (213.16)
Note 36 Maturity Analysis of Assets and Liabilities

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered
or settled.
H (in Crore)
Particulars
Within 12 months After 12 months Total Within 12 months After 12 months Total
Assets
Financial Assets
Cash and Cash Equivalents 1.87 - 1.87 1.68 - 1.68
Bank Balance other than above 6.20 - 6.20 0.67 - 0.67
Receivables
(i) Trade Receivables 74.53 - 74.53 79.91 - 79.91
(ii) Other Receivables 3.39 2.59 5.98 3.01 0.84 3.85
Investments 1,331.65 4,238.58 5,570.23 1,106.18 3,647.07 4,753.25
Other Financial Assets 13.94 11.26 25.20 20.74 11.61 32.35
Sub-total – Financial Assets 1,431.58 4,252.43 5,684.01 1,212.19 3,659.52 4,871.71
Non-Financial Assets
Current Tax Assets (net) - 30.63 30.63 - 31.29 31.29
Property, Plant and Equipment - 122.18 122.18 - 136.86 136.86
Intangible Assets Under Development - 0.46 0.46 - 1.18 1.18
Goodwill - 6.04 6.04 - 6.04 6.04
Other Intangible Assets - 6.88 6.88 - 10.32 10.32
Other Non-Financial Assets 22.83 7.34 30.17 22.46 14.84 37.30
Sub-total – Non-Financial Assets 22.83 173.53 196.36 22.46 200.53 222.99
Total Assets 1,454.41 4,425.96 5,880.37 1,234.65 3,860.05 5,094.70


H (in Crore)
Particulars
Within 12 months After 12 months Total Within 12 months After 12 months Total
Liabilities
Payables
Trade payables
(i) Total Outstanding Dues of Micro - - - - - -
Enterprises and Small Enterprises
(ii) Total Outstanding Dues of 29.24 - 29.24 25.88 - 25.88
Creditors other than Micro
Enterprises and Small Enterprises
Other Financial Liabilities 104.21 85.43 189.64 116.60 87.53 204.13
Sub-total – Financial Liabilities 133.45 85.43 218.88 142.48 87.53 230.01
Non-Financial Liabilities
Current Tax Liabilities (net) 7.37 - 7.37 4.34 - 4.34
Provisions 1.21 10.58 11.79 0.87 7.01 7.88
Deferred Tax Liabilities (net) - 75.34 75.34 - 32.13 32.13
Other Non-Financial Liabilities 36.95 - 36.95 44.16 - 44.16
Sub-total – Non-Financial 45.53 85.92 131.45 49.37 39.14 88.51
Liabilities
Total Liabilities 178.98 171.35 350.33 191.85 126.67 318.52
Note 37
H (in Crore)
Ratios Numerator Denominator March 31, 2022 % Variance
(a) Capital to risk-weighted assets ratio (CRAR)* - - - -
(b) Tier I CRAR* - - - -
(c) Tier II CRAR * - - - -
(d) Liquidity Coverage Ratio (no.of times) 1,431.58 178.98 8.00 26.59
[Total Financial Assets (within 12 months)/Total
Liabilities (within 12 months)]
This has increased as Financial asset balances and
specifically, investments which are maturing within
12 months from the reporting date including new
purchases, have changed.
H (in Crore)
Ratios Numerator Denominator March 31, 2021 % Variance
(a) Capital to risk-weighted assets ratio (CRAR)* - - - -
(b) Tier I CRAR* - - - -
(c) Tier II CRAR * - - - -
(d) Liquidity Coverage Ratio (no.of times) 1,212.19 191.85 6.32 (46.78)
[Total Financial Assets (within 12 months)/Total
Liabilities (within 12 months)]
This has decreased as Financial asset balances and
specifically, investments which are maturing within
12 months from the reporting date including new
purchases, have changed.
*Note: Since the Company is not in lending business, it does not have any credit exposure. Hence, these ratios are not applicable to the Company.


Note 38
COVID-19 was declared a pandemic in March 2020 and since then it has had a sizable impact on the economies of various
countries. Nations across the globe at this juncture seem to be returning to normalcy as a result of waning infection levels. An
aggressive vaccination drive by the government in India has led to significant improvement in the situation which has provided
a pathway to the normalisation of economic activity. However, the situation will have to be monitored till the pandemic is finally
put to rest.
While the Company’s operations have shown resilience, the extent to which the pandemic may impact its future results financial
statements will depend on ongoing developments. The Company continues to closely monitor material changes in economic
conditions, markets and the operating environment.
Further, during the year ended March 31, 2022, there has been no material change in the controls or processes followed in the
preparation of the financial statements.
Note 39
The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on
which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into
effect and will record any related impact in the period in which the Code becomes effective.
Note 40
Previous year figures have been regrouped/reclassified wherever necessary, in order to make them comparable.



CIN: L65991MH1999PLC123027
HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166, Backbay Reclamation,
Churchgate, Mumbai - 400020, Maharashtra.

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23rdAnnual Report 2021-22

have navigated the ebb and flow of market cycles

5.08% 30 Our Board of Directors

Employees Live Accounts

HDFC AMC at a Glance

Our promoter shareholders

HDFC abrdn Investment Management Limited

Housing Key facts

Figures as at 31 December 2021

4 ASPIRE. BELIEVE. ACHIEVE.

Our Investment Philosophy

A robust investment philosophy, efficient risk management, best‑in‑class practices

Equity‑Oriented Schemes Debt-Oriented Schemes

ANNUAL REPORT 2021-22 5

Our Product Suite

Note: As of March 31, 2022

Equity‑oriented includes all solution oriented schemes/ Segment‑Wise Break‑Up (%)

Liquid Fund/Money Market 84,755 1,04,312

Remaining Income/ Debt 96,897 1,03,984

Hybrid Schemes 74,142 74,427

Index Funds 9,931 8,732

GOLD ETF 3,087 3,025 Banks 13.5

Total 4,07,553 4,32,085

Note: As of March 31, 2022

6 ASPIRE. BELIEVE. ACHIEVE.

Spread of ISCs across India Physical footprint ISCs

T30 – Top 30 cities in India

Investor base break‑up

Percentage of AUM by Geography

Geography wise breakup

B30 ‑ MAAUM* 16.5

*Monthly Average AUM

ANNUAL REPORT 2021-22 7

Decoding Key Terminologies

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ANNUAL REPORT 2021-22 9

Key Performance Indicators

Revenue from Operations Operating Profit

2,115 1,513 1,537

Profit Before Tax Profit After Tax

Return on Equity Dividend Per Share

10 ASPIRE. BELIEVE. ACHIEVE.

Assets Under Management Active Equity AUM

3,95,476 4,07,553 1,99,548

Systematic Transactions Live Individual Accounts

1,182 1,231 93.4 97.7

Digital Transactions as % of Total Individual’s Share in AUM

82 62.2 63.0 62.4

ANNUAL REPORT 2021-22 11

12 ASPIRE. BELIEVE. ACHIEVE.

ANNUAL REPORT 2021-22 13

Passion with Purpose

For the mutual fund industry, the last

14 ASPIRE. BELIEVE. ACHIEVE.

ANNUAL REPORT 2021-22 15

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ANNUAL REPORT 2021-22 17

 RM & more on our MFD’s Digital Office:

Analytics based campaigns: Ran

Refresh of Investor Solutions: Improved

ETFs via HDFC AMC website: Our investors can

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Investor Investor Chat Bot Quick Links WhatsApp Transact

RM & more on our MFD’s Digital Office:

Watch here: https://www.youtube.com/watch?v=KZnkkkZAG-s